Transfer Pricing Threshold Checker
Enter your related-party figures to see which UAE corporate tax disclosure and documentation obligations apply to you.
Based on Article 55 of Federal Decree-Law No. 47 of 2022, Ministerial Decision No. 97 of 2023, and the FTA Corporate Tax Guide (CTGTXR1). The arm's-length principle (Article 34) applies regardless of these thresholds. This is a screening aid, not a transfer pricing study — confirm your specific position with a qualified tax advisor.
UAE transfer pricing thresholds at a glance
| Obligation | Threshold |
|---|---|
| Related Party Transactions Schedule | Aggregate transactions > AED 40 million |
| — individual category disclosure within that | Category > AED 4 million |
| Connected Persons Schedule | Per connected person > AED 500,000 |
| Master File & Local File | Own revenue ≥ AED 200 million, or MNE group revenue ≥ AED 3.15 billion |
| Country-by-Country Reporting | MNE group global revenue ≥ AED 3.15 billion |
| Arm's-length principle | No threshold — always applies |
These are three separate, independently-triggered obligations — a business can clear the Related Party threshold while still triggering the Connected Persons Schedule, or vice versa.
Frequently Asked Questions
What triggers the Related Party Transactions Schedule?
Aggregate transactions with all related parties exceeding AED 40 million in the tax period. Once triggered, individual transaction categories above AED 4 million must be disclosed separately. Dividends between related parties are excluded from this calculation.
What triggers the Connected Persons Schedule?
This is a separate, lower threshold: aggregate payments or benefits to a single connected person — including that person's own related parties — exceeding AED 500,000 in the tax period. Salaries, rent, interest and other benefits to the same person are added together.
When do I need a full Master File and Local File?
Under Ministerial Decision No. 97 of 2023, formal TP documentation is required if you're part of a Multinational Enterprise Group with consolidated group revenue of AED 3.15 billion or more, or if your own standalone revenue is AED 200 million or more in the tax period.
What if I'm below all these thresholds?
The disclosure schedules and formal documentation aren't required, but the arm's-length principle itself has no threshold — your related-party pricing still needs to reflect market value, and you should be able to support it if the FTA asks.
Do free zone companies need to follow these rules?
Yes. All free zone entities with related-party transactions must apply the arm's-length principle and are subject to the same disclosure thresholds as mainland companies.
Is this checker professional tax advice?
No. It applies the published statutory thresholds to the figures you enter as a screening aid. Related party classification, category-level breakdowns, and documentation content are genuinely complex — confirm your specific position with a qualified tax advisor.
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