Materiality Thresholds for Related Party Transaction Disclosure

The Federal Tax Authority (FTA) issued a Corporate Tax Guide on Tax Returns, providing key Transfer Pricing guidance, particularly for the disclosure requirements of high-value transactions with related parties and connected persons in the Related Party and Connected Persons Schedules of the tax return (also known as the TP Disclosure Form). Discover more in this report.

Andersen's Take

• This guide eases the compliance requirements for small businesses. However, it's important to note that the FTA still has the authority to request documentation to verify the arm’s length nature of transactions.
• Therefore, irrespective of materiality threshold for Transfer Pricing Compliances (such as TP Disclosure Form, Local file, and Master file), businesses in the UAE must continue to ensure that transactions with related parties and connected persons comply with the arm’s length principle in accordance with UAE Transfer Pricing Regulations.
• Therefore, irrespective of materiality threshold for Transfer Pricing Compliances (such as TP Disclosure Form, Local file, and Master file), businesses in the UAE must continue to ensure that transactions with related parties and connected persons comply with the arm’s length principle in accordance with UAE Transfer Pricing Regulations.

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