Do You Need TP Audit Support? A Practical Starting Point
An FTA information request touching related-party transactions rarely arrives with a generous runway — the Local File or Master File is usually due within a stipulated window, commonly around 30 days, and a benchmarking study reconstructed under that pressure reads very differently from one built in the ordinary course of business. PNPC's Dubai transfer pricing desk steps in the moment a query, audit notice, or pre-audit information request lands: assessing exposure, assembling or defending the documentation, engaging the FTA directly on the technical merits of the pricing applied, and — where an adjustment is proposed that does not hold up — carrying the reconsideration or dispute through to resolution. We support groups whether PNPC built the original documentation or another advisor did, and we coordinate the India-side leg for groups whose related parties also sit under Indian transfer pricing scrutiny.
Understanding the Service
TP Audit Support is PNPC's engagement for UAE taxable persons facing a Federal Tax Authority (FTA) information request, desk review, or formal audit that touches related-party or connected-person transactions under Article 34 of the Corporate Tax Law (Federal Decree-Law No. 47 of 2022) and its documentation rules under Ministerial Decision No. 97 of 2023.
For the full scope, current process and what PNPC includes, see the dedicated TP Audit Support service page.
Is This Relevant to Your Business?
- The FTA has issued an information request specifically asking for a Local File, Master File, or supporting benchmarking analysis, with a response due within the stipulated period
- A Corporate Tax audit or desk review is underway and related-party or connected-person transactions are among the items being examined
- The FTA has queried a figure on the Related Party Transactions disclosure schedule that does not appear to reconcile to the audited financial statements
- Existing transfer pricing documentation was prepared by another advisor or an in-house team, and it needs an independent stress-test before being produced to the FTA under a live request
Before You Assume You Need This
- No FTA query, audit notice, or request has been received, and the actual need is building transfer pricing documentation from scratch — that is the advisory and documentation engagement, not audit support, though PNPC frequently recommends starting there specifically to avoid ever needing this one
- The business has no related-party or connected-person transactions at all, so there is no transfer pricing exposure for an audit to examine in the first place
- The FTA's request or audit is focused on matters unrelated to related-party pricing — for example, a general VAT compliance review with no Corporate Tax transfer pricing dimension — which calls for a different specialist engagement
Questions We're Actually Asked
What triggers an FTA transfer pricing audit or information request?
Common triggers include an inconsistency between the Related Party Transactions disclosure figures and the audited financial statements, a related-party or connected-person transaction value that appears disproportionate to the entity's size or function, a Qualifying Free Zone Person whose related-party dealings are being checked for arm's length compliance, or simply routine risk-based selection as part of the FTA's broader Corporate Tax compliance programme. The specific trigger is not always disclosed in the request itself.
How much time is there to respond to an FTA transfer pricing information request?
The FTA generally sets a stipulated period for producing a Local File or Master File on request — commonly around 30 days, though the exact window is stated in the specific request and can vary. Desk review queries and full audit timelines can differ from this. The response deadline stated in the actual notice governs, not a general assumption carried over from a different engagement.
We already have a Local File — can we just hand it over as-is?
Only after it has been checked against the specific request and the current facts. A Local File prepared a year or more ago may reference transaction values, entities, or a FAR profile that has since moved, and producing an outdated file without review can create a new inconsistency rather than resolve the FTA's query. PNPC always stress-tests existing documentation before it goes to the FTA, even where PNPC originally prepared it.
Where PNPC Fits In
If an FTA request or audit notice has already landed, the clock is running — speak to PNPC's Dubai transfer pricing desk today, not after the internal review is complete.
PNPC Global has advised Dubai businesses since 1986. Explore the full UAE Taxation & Regulatory Compliance practice for related services, or go straight to the TP Audit Support page for specifics.
Rates, thresholds and filing dates are set by the relevant authority and revised periodically. Treat anything numeric here as "ask PNPC for the current figure," not as a quoted fact.