What is the Master File UAE?

It’s a transfer pricing document that contains details about a multinational group’s business, structure, and global financials.

Who must prepare the Master File in UAE?

Companies meeting FTA thresholds or with significant related-party transactions.

What’s included in the Master File?

Organizational structure, business activities, intangibles, financial activities, and consolidated statements.

What happens if a company doesn’t submit the Master File?

The company may face fines, more audits, and loss of credibility.

Is the Master File part of UAE corporate tax compliance?

Yes, it’s required for transfer pricing compliance under the UAE Corporate Tax Law.

Master File UAE Guide & Compliance 🥇

Master File UAE – Complete Business Guide

Master File UAE is a key transfer pricing document required for companies that have related-party transactions. It contains information about the group’s business structure, activities, and global financial performance.

The UAE introduced the Master File requirement under its Corporate Tax Law to align with OECD Transfer Pricing Guidelines. This rule ensures transparency and helps the Federal Tax Authority (FTA) check if companies follow the arm’s length principle.

Every business that meets certain revenue or transaction thresholds must prepare and maintain the Master File.

Understanding the Master File in UAE

The Master File gives tax authorities a complete view of a multinational group’s operations. It supports the Local File, which contains detailed information about local transactions.

Main purposes of the Master File include:

Showing the overall structure of the group.
Providing details about global transfer pricing policies.
Helping authorities identify tax risks.

When is the Master File Required?

Not every company in the UAE must prepare a Master File. The requirement applies when a company:

Meets the revenue or asset threshold set by the FTA.
Has significant cross-border related-party transactions.
Operates as part of a multinational group.

The FTA can request the Master File anytime, so companies must keep it ready.

Contents of the Master File

The Master File includes several sections to give a full picture of the group’s operations:

Organizational Structure – Charts and details of all entities in the group.
Business Activities – Description of main products, services, and markets.
Intangibles – Details of patents, trademarks, and intellectual property.
Intercompany Financial Activities – Information on loans and guarantees.
Financial and Tax Positions – Consolidated financial statements and tax details.

Why the Master File is Important

The Master File plays a central role in transfer pricing compliance:

It helps ensure that related-party transactions meet the arm’s length principle.
It allows tax authorities to understand the group’s global operations.
It reduces the risk of disputes and audits.

Challenges in Preparing the Master File

Companies in the UAE may face challenges such as:

Collecting accurate and complete information from all group entities.
Understanding complex OECD documentation standards.
Aligning the Master File with the Local File.
Meeting deadlines set by the FTA.

Working with experienced tax professionals can make the process easier.

Penalties for Non-Compliance

Failure to prepare or submit the Master File when required can lead to:

Financial penalties from the FTA.
Increased audit frequency.
Damage to the company’s credibility.

Compliance protects the business from unnecessary risks.

Best Practices for Master File Compliance

To meet UAE Master File requirements:

Gather information from all group entities early.
Use consistent data across the Master File and Local File.
Review and update the file annually.
Work with qualified transfer pricing advisors.

What Can Help – Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing helps companies prepare the Master File UAE according to FTA and OECD requirements. We collect accurate data, create clear documentation, and ensure your compliance is complete. In business, an ounce of prevention is worth a pound of cure.

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