KSA Transfer Pricing

The KSA Corporate Tax Law requires mandatory Transfer Pricing policies between parties operating under common control or ownership for cross-border and domestic transactions to function under an arm’s length basis.

If your business conducts transactions between related parties and connected persons, you are expected to implement a formal Transfer Pricing policy.

Subject to the size of your KSA business, this can include a Disclosure form, Master and local files detailing your formal policy, and pricing determination evidenced by empirical benchmarks. We deliver best practice guidance to define, optimise and reduce costs in your KSA Transfer Pricing model with continuous support to maintain your transfer pricing rules.

Our service is designed to assess KSA Corporate Tax impacts on your company structure, related/connected party transactional model, and reporting processes to minimise risks and manage an optimal Corporate Tax rate.

Our scope is complete and includes opportunities to define the most effective KSA Corporate Tax rate, structuring benefits, master and local documentation, and Transfer Pricing benchmarks. In addition, we can maintain your Transfer Pricing model as your business evolves.

With our deep understanding of the Legislation, legal structuring, and expertise in Transfer Pricing rules and compliance, we provide an optimal model for clients across multiple industries to manage your KSA Corporate Tax requirements.

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Our Difference

What Sets Our Service Apart

  • Experienced Advisors
  • Legislation Understanding
  • Optimise Tax Obligations
  • Implementation Support
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OUR EXECUTION

How We Deliver

Assess

We aim to understand your structure and transactions to set an accurate baseline

Policy Definition

Our TP consultants define your policy and documentation with use of the necessary benchmarking tools

Implementation & Training

Training is provided to ensure your finance team can properly assess and account for any transactonal adjustments

Quality Controlled Delivery

Our service delivery is controlled through our mobile app and portal. We ensure you have access to a team to collaborate and consistently execute your requirements.

FAQ's

What Are Related & Connected Parties?

Under KSA Corporate Tax, broadly it is a related party is an individual or entity that has a pre-existing relationship with a business through ownership, control, or kinship (in the case of natural persons).

A person will be considered as ‘connected’ to a business if he or she is an individual who directly or indirectly has an ownership interest in, or controls, the taxable person, a director or officer of the taxable person, An individual related to the owner, director, or officer of the taxable person to the fourth degree of kinship or affiliation, including by birth, marriage, adoption, or guardianship.

For any businesses of a certain scale cross border or domestic transactions, you have the mandatory requirement to implement a transfer pricing policy. with all necessary documentation and including disclosure to ZATCA.

Yes, Transfer Pricing rules do not distinguish between domestic or cross border transactions

Yes, your business is most likely reacting to market changes in pricing and related party transactions. This naturally leads to changes to the master and local files that are reflected in pricing changes affecting your KSA Corporate Tax liabilities.

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Whether you have an existing Accounting,  Corporate or Zakat Tax, Employee Management & Payroll and ERP & Zoho Implementation function operating its own system & process, or a small or medium company needing complete outsourcing services, we have the flexibility to serve your business.