Transfer Pricing Calculator
Evaluate multiple related-party transactions to identify mandatory Arm’s Length adjustments and estimate potential Corporate Tax add-backs.
Important Transfer Pricing Disclaimer
This calculator estimates mandatory upward transfer pricing adjustments only, where related-party transactions are priced below arm’s length income or above arm’s length expense, resulting in an increase in Taxable Income under UAE Corporate Tax.
Downward transfer pricing differences (where expenses are below arm’s length or income exceeds arm’s length) are not reflected in the results, as such adjustments are not automatically deductible under UAE Corporate Tax and generally require prior approval from the Federal Tax Authority (FTA).
The estimated Corporate Tax impact is calculated at the standard 9% rate and is provided for scenario planning only. Actual tax outcomes depend on facts, benchmarking support, and regulatory review.
Transaction Simulator
| Transaction Type | Transaction Description | Actual Amount (AED) | Arm's Length (AED) | Status | |
|---|---|---|---|---|---|
| Compliant |
Total Taxable Add-Backs
The aggregate amount to be added back to your Net Income for Corporate Tax purposes due to non-arm's length pricing.
Estimated CT Impact (@ 9%)
Additional Corporate Tax liability resulting specifically from Transfer Pricing adjustments.
Why Arm's Length Matters?
Mandatory Compliance
All Related Party Transactions (domestic & foreign) must meet the Arm's Length Standard (Art. 34).
Audit Trigger
Significant deviations without TP documentation (Master/Local File) are primary audit targets.
Self-Correction Mechanism
Entities must self-adjust taxable income if reported results are not arm's length.
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View TP Advisory ServicesWhat does the UAE Transfer Pricing Calculator do?
This calculator compares the actual amount of each related-party transaction with its arm's length amount. It estimates the upward adjustment you may need to add to taxable income and its corporate tax effect at 9%, across several transactions at once.
How to use it
- Choose whether the entity is a mainland company or a Qualifying Free Zone Person.
- Add each related-party transaction: income or expense, actual amount and arm's length amount.
- Review the total add-backs and the estimated corporate tax impact.
UAE Transfer Pricing Calculator: questions and answers
What is the arm's length principle?
Transactions between related parties must be priced as independent parties would price them in similar circumstances. Under UAE corporate tax this is set out in Article 34 of Federal Decree-Law No. 47 of 2022.
Which adjustments does the calculator show?
Only upward adjustments, where an expense is above or income is below the arm's length amount. Downward adjustments are not included, and the corporate tax effect is estimated at the standard 9% rate.
Does this replace a transfer pricing study?
No. The arm's length amounts you enter need support, such as a benchmarking study. The calculator shows the effect of the numbers; it does not prove that they are arm's length.
Is the result tax or financial advice?
No. The result is an estimate for planning, based only on the figures and answers you enter. It is general information, not legal, tax or financial advice. For a decision, have your position reviewed against your full facts.
Is the information I enter stored or sent anywhere?
No. The calculation runs in your browser and the figures you enter are not sent to Valorin. If you want us to review your result, contact us and share only what you choose.
Related
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General information only, not legal or tax advice.
Valorin is an independent advisory firm, not affiliated with the FTA or MoF.