Comply with OECD BEPS Action 13 by documenting your MNE group’s global structure and financial blueprint. G12 prepares defensible Master Files that withstand FTA scrutiny and mitigate cross-border transfer pricing risks.
Transfer Pricing documentation is no longer optional for qualifying entities. The Master File provides tax authorities with a standardized overview of your organizational footprint, intangibles, and intercompany financial activities. Its primary function is to allow the FTA to assess high-level transfer pricing risk and ensure profit allocation matches economic substance.
G12 conducts a comprehensive gap analysis between your current group documentation and the specific requirements of OECD BEPS Action 13 and UAE Transfer Pricing regulations. We ensure that your global narrative is consistent with local entity filings, eliminating discrepancies that trigger audits.
UAE Corporate Tax Law and Ministerial Decision No. 97 of 2023 define strict criteria for Master File maintenance. Entities meeting the following conditions must prepare and maintain this documentation:
Compliance extends to associated enterprises and subsidiaries engaging in material related-party transactions. G12’s tax advisors verify your eligibility status based on quantitative revenue analysis and group structure assessments
Data consistency across jurisdictions is critical. A Master File that contradicts a Local File or Country-by-Country Report (CbCR) exposes the group to immediate regulatory penalties. G12 applies a forensic approach to data compilation, ensuring your documentation reflects the Arm’s Length Principle.
Global Value Chain Mapping: Detailed articulation of the group’s supply chain, identifying where value is generated versus where profits are booked.
DEMPE Analysis: Identification of entities responsible for the Development, Enhancement, Maintenance, Protection, and Exploitation of intangibles to justify royalty flows.
Intercompany Financials: Documentation of group financing arrangements, including transfer pricing policies for R&D and headquarters services.
Jurisdictional Alignment: Ensuring the Master File satisfies the specific filing requirements of the UAE while remaining compatible with regulations in other countries where the group operates.
We evaluate cross-border transactions to identify potential tax leakage or double taxation risks before filing.
Documentation is structured proactively to answer potential FTA inquiries regarding profit shifting or base erosion.
Our team tracks daily updates to OECD guidelines and UAE Federal Decree-Laws to keep your compliance strategy current.
The Master File provides a high-level overview of the global MNE group, focusing on organizational structure, intangibles, and financial activities across all jurisdictions. The Local File focuses specifically on the local entity’s management structure and detailed transactional data to demonstrate that specific related-party transactions in the UAE adhere to the Arm’s Length Principle.
Non-compliance attracts significant administrative penalties. Failure to submit the Master File within the 30-day window upon request results in statutory fines. Furthermore, the absence of documentation allows the FTA to make Transfer Pricing adjustments based on their own estimates, potentially increasing your tax liability.
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