04/09/2026
AED 40 million is not the only Transfer Pricing threshold businesses need to watch.
Under the UAE Corporate Tax Return rules, if aggregate transactions with Related Parties exceed AED 40 million in a Tax Period, the Related Party Schedule must be completed.
Once that threshold is crossed, transaction categories exceeding AED 4 million must be disclosed separately.
But disclosure thresholds are only part of the picture. UAE Transfer Pricing rules apply to transactions with Related Parties and Connected Persons, and the arm’s-length principle applies regardless of whether these disclosure thresholds are exceeded.
Businesses should therefore review not just whether they cross a reporting threshold, but whether their related-party pricing can be commercially justified and supported.
Speak to KGRN’s Tax Team for Transfer Pricing support.