HayyaTax: FTA Approved Accounting and Tax Consultancy in Dubai
⚠️ Do you know about deductions in corporate tax? You might bepaying more tax than actual!
AI Powered Salary Benchmarking for Transfer Pricing in the UAE!
Transfer Pricing Salary Benchmarking of
Connected Persons for Corporate Tax
Our transfer pricing consultants can provide companies with reliable UAE transfer pricing benchmark services.
Let's Talk
Free Consultation
Connected Persons
Salary Benchmarking in UAE
In the UAE, transfer pricing regulations require businesses to ensure that salaries paid to connected persons align with market standards. Connected persons include shareholders, directors, or related employees who have direct or indirect control over the company’s financial and operational decisions. Since these salaries are considered related-party transactions, tax authorities closely scrutinize them to ensure they reflect an arm’s length value—meaning they should be comparable to what an independent third party would receive for a similar role in a similar industry.
A salary benchmarking study helps businesses determine whether their compensation structures comply with UAE transfer pricing rules, minimizing tax risks and potential disputes with regulatory authorities. By using a benchmarking approach, companies can justify the salaries paid to connected persons with solid market data, ensuring fairness, transparency, and compliance.
What is Transfer Pricing
Benchmarking Study
A transfer pricing benchmarking study helps multinational enterprises (MNEs) and their associated entities ensure that related party transactions comply with the arm’s length principle. Multinational enterprises (MNEs) and their associated entities use a transfer pricing benchmarking study to assess whether their related party transactions comply with the arm’s length principle. This ensures that intercompany transactions are priced fairly and in line with market standards.This analysis compares intercompany transactions with independent market transactions to determine fair pricing.
A well-conducted benchmarking study helps businesses:
- Prepare comprehensive transfer pricing documentation.
- Set appropriate mark-ups for related party transactions.
- Determine the arm’s length range for pricing compliance.
At HayyaTax, our transfer pricing experts provide accurate and reliable UAE transfer pricing benchmarking services, helping businesses stay compliant and mitigate tax risks.
Transfer Pricing Benchmarking Services in the UAE
Ensuring compliance with UAE transfer pricing regulations is crucial for multinational enterprises (MNEs) engaged in intercompany transactions. A transfer pricing benchmarking service helps businesses determine fair pricing by analyzing market data and comparing related party transactions with independent third-party transactions. This ensures adherence to the arm’s length principle and minimizes tax risks.
Purpose of a Transfer Pricing Benchmarking Study
A benchmarking study helps businesses determine fair pricing for intercompany transactions by analyzing market conditions and comparing them to independent third-party transactions. Ensuring compliance with the arm’s length principle protects businesses from tax risks and regulatory scrutiny. This study allows companies to:
- Establish an Arm’s Length Price – Identify a fair range of values for intercompany transactions.
- Set Market-Based Mark-ups – Ensure transfer prices align with industry standards.
- Enhance Compliance – Avoid penalties by meeting UAE transfer pricing regulations.
Our Transfer Pricing Benchmarking Process
A well-executed benchmarking study follows a structured approach to ensure accurate and reliable results. The process involves analyzing the company’s industry, reviewing transactions, and identifying comparable market data. The key steps include:
- Define the Scope – Determine the financial years to be covered in the study.
- Analyze Business Operations – Understand the taxpayer’s industry, functions, and risk profile.
- Examine Controlled Transactions – Review intercompany transactions to assess compliance.
- Assess Internal Comparables – Identify any internal transactions that may serve as benchmarks.
- Gather External Comparables – Source reliable market data to compare with related party transactions.
- Select the Appropriate Transfer Pricing Method – Choose the best method based on the nature of the transaction.
- Identify Potential Comparables – Find independent third-party transactions for benchmarking.
- Make Comparability Adjustments – Adjust for differences that could affect pricing analysis.
- Interpret Data & Determine Pricing – Establish an arm’s length price using collected data.
Why Hire UAE Transfer Pricing Benchmark Services?
When it comes to transfer pricing benchmarking services in the UAE, HayyaTax is a trusted name for businesses seeking compliance and accuracy. Multinational enterprises (MNEs) and associated entities must ensure that their transfer pricing policies align with UAE regulations, and that’s where expert guidance becomes essential.
At HayyaTax, we specialize in conducting salary benchmarking for connected persons, ensuring that compensation structures reflect arm’s length pricing. Our services cover the complex process of collecting and analyzing market data, identifying comparable transactions, and assessing the appropriateness of transfer pricing methods—all to safeguard your business from compliance risks and tax disputes.
With our expertise in corporate tax and transfer pricing regulations in the UAE, we provide businesses with defensible benchmarking studies and audit-ready documentation. Partnering with HayyaTax means working with professionals who understand the evolving tax landscape and are committed to ensuring your company remains compliant and competitive.
Given the increasing scrutiny from tax authorities, businesses must ensure that their transfer pricing policies align with UAE regulations. A professional benchmarking study not only helps in compliance but also provides strategic business insights. Key benefits include:
- Regulatory Compliance – Avoid penalties by preparing accurate and complete transfer pricing documentation.
- Tax Protection – Strengthen your position in case of tax audits or disputes.
- Business Insights – Gain valuable data on pricing trends, market conditions, and competitor strategies.
Book a Free Consultation!
Let's Get Started
HayyaTax provides comprehensive salary benchmarking services to help businesses establish fair, competitive, and market-aligned salary structures. Our expert analysis ensures that your compensation strategy attracts and retains top talent while maintaining internal equity and compliance with UAE labor laws.
With access to reliable market data and industry insights, we help you make informed decisions about salary structures, benefits, and overall compensation strategies.
Get in touch today. Fill out the form, and our specialists will assist you with tailored salary benchmarking solutions.