Requirements For Maintaining Transfer Pricing Documentation In UAE

On May 11, 2023, the UAE Ministry of Finance (MOF) issued Ministerial Decision No. 97 of 2023, announcing the requirements for maintaining Transfer Pricing Documentation to comply with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Business (CT Law). Additionally, on May 12, 2023, the MOF released the Explanatory Guide on the UAE CT Law, offering detailed information on each article of the UAE CT Law. Ministerial Decision No. 97 and the Explanatory Guide regarding UAE Transfer Pricing (TP) Documentation provide information about conditions, requirements, and thresholds.

Thresholds For Maintaining Transfer Pricing Documentation In UAE

Ministerial Decision No. 97 provides information about the conditions under which a Taxable Person is required to maintain both a Master File and a Local File in the relevant tax period. These conditions are as follows:


  • Revenue in relevant tax period at least AED 200 million
  • Part of the Multinational Enterprise (MNE) group with a total consolidated revenue of at least AED 3.15 billion

A Person With Less Threshold Revenue

If a person’s revenue is less than AED 200 million, they would be exempted from maintaining TP documentation and would benefit from Small Business Relief. This reduction in the compliance burden is advantageous for small businesses.

Constituent Entity Status in MNEs

If a taxable person is part of the MNE Group, they would be required to maintain TP documentation, regardless of whether the revenue threshold is met or not.

Requirement For Maintaining The Master File (MF) And The Local File (LF)

According to the CT Law, the Explanatory Guide, and the Ministerial Decision, they define who is required to maintain both the MF and LF:


  • A Taxable Person is a person subject to the CT Law 
  • Within a Tax Group, a Parent Company is responsible for filing a Tax Return 

Guidelines For Free Zone Person

According to Article 55 of the CT Law, to qualify for a 0% Corporate Tax rate in certain activities, a Free Zone Person must comply with TP Documentation requirements.

Entity Consider For Local File Preparation

Under Ministerial Decision No. 97, taxable persons included in Local File transactions or arrangements with Related Parties and Connected Persons should consider the following types of entities:


  • Permanent Establishments in the UAE
  • Persons who derive State Source Income (income derived from Resident Persons or generated from activities or assets within the UAE)
  • Taxable Persons opting not to report any Taxable Income (Small Business Relief)
  • Exempt Persons (e.g. Government Entities, Government Controlled Entities, Individuals involved in Extractive Business, etc.)

Entity Excluded For Local File Preparation

A Taxable Persons should be excluded from the subsequent transactions and agreements in the Local File with Related Parties and Connected Persons if they satisfy the following criteria:


  • Transactions with local entities are excluded from documentation requirements, except for the following:
  • Exempt persons
  • Free Zones
  • Small Business Relief Entities 


  • Transactions involving both natural and juridical persons:
  • Excluded from LF, but a detailed analysis is required  to confirm pricing is arm’s length (i.e., entities were acting independently)
  • A one-time analysis is needed for documentation due to current legal ambiguity


  • Transactions with the Permanent Establishment of a Non-Resident Person in the UAE at the 9% Corporate Tax rate.

How Can BRISK Help You?

BRISK professionals possess a profound understanding of Transfer Pricing and Corporate Tax regulations in the UAE. We support your business by providing expert guidance on comprehending the intricacies of Transfer Pricing requirements outlined in the UAE CT Law. Our service goes beyond mere documentation preparation; it involves meticulous analysis of transactions to ensure adherence to arm’s length pricing standards. BRISK not only assists you in Transfer Pricing Documentation but also provides continuous support, keeping documentation up-to-date and in compliance with evolving regulations. We ensure that your business in the UAE is well-prepared to navigate the complexities of Transfer Pricing and foster a proactive and compliant approach.

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