UAE Taxpayers Prioritise Operational Transfer Pricing Amid First Compliance Cycle

UAE, 12 November, 2025: As UAE businesses navigate their first corporate tax compliance cycle for FY24, focus is shifting toward strengthening Operational Transfer Pricing (OTP) frameworks to ensure smooth reporting and mitigate tax risks.

OTP covers the full transfer pricing lifecycle—from budgeting and policy design to monitoring, reporting, and audit support. Weaknesses in any stage can result in costly inefficiencies and compliance gaps, often surfacing only after filings are complete.

During this first year of Transfer Pricing (TP) compliance, companies were required to file TP Disclosure Forms and Local Files. Many faced recurring challenges, including missing formal TP policies, late submissions, inconsistent documentation, and poor internal coordination between tax and finance teams.

Experts emphasise that a strong OTP governance framework—clearly defining roles, timelines, data flows, and internal controls—is essential to reduce compliance effort and manage TP risk.

Businesses are advised to:

• Review year-to-date results and make TP adjustments before year-end.

• Communicate exposures to senior management and boards.

• Implement a documented OTP framework that integrates people, processes, and technology for ongoing compliance.

A proactive, governance-driven OTP approach will be key for UAE groups seeking to minimise tax exposure and enhance operational efficiency in the new corporate tax era.

Source: www.pwc.com