AHG offers Transfer Pricing Services as part of our commitment to provide premium quality services to its client in UAE, and Egypt. Transfer pricing involves the assignment of costs to transactions for goods and services between related parties.
Transfer pricing is typically used for purposes of financial reporting and reporting income to tax authorities. Transfer Pricing Services are available in our offices both in Dubai and Cairo
It is the 
setting of the price for goods and
services sold between controlled (or elated) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods
paid by the parent to the subsidiary is the transfer price.
The “arm’s-length 
principle” states that the amount charged by one related party to another for a given
product must be the same as if the parties were not related. An arm’s-length price for a transaction is therefore what the price of that transaction would be on the open market
A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm’s length transaction is to ensure that both parties in the deal are acting in their own self-interest and are not subject to any pressure or duress from the other party.
Types of Transfer– 5 Major Types:
Transfers and promotions are the two important ways of personnel adjustments. When employees are transferred without any promotion or demotion, it is simply a transfer.
Transfer Price: When one entity purchases goods from another entity under the same ownership, a
Sales price: is charged, just as it would be to an outside customer. This price is called the transfer price. In this case, the sale is made to another entity as part of the production process rather than to the end-user
Arm’s Length Price can be computed by the following methods;
Such other methods as may be prescribed by the board.
Assess the contribution made by each party taking into consideration the functions, responsibility, assets utilized and external market data. Divide the combined net profit in the ratio of the contribution as above determined. Take the profit to arrive at the arm’s length price (ALP).
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