Transfer Pricing Advisory In Saudi Arabia
Transfer pricing refers to the pricing of transactions between related entities, including goods, services, financing, and intangible assets. In Saudi Arabia, ZATCA mandates that such transactions follow the arm’s length principle to ensure fair market value and prevent tax base erosion. MFD Services supports clients by coordinating with licensed tax advisors to structure, document, and defend transfer pricing policies in line with Saudi and international standards.
Why Transfer Pricing Advisory Is Critical In Saudi Arabia
Effective transfer pricing advisory helps businesses:
- Avoid penalties and audit exposure
- Comply with ZATCA’s transfer pricing bylaws
- Align with OECD documentation standards
- Support cross-border tax planning
- Defend intercompany pricing during audits or disputes
MFD ensures that transfer pricing strategies are compliant, documented, and commercially sound.
Types Of Businesses That Require Transfer Pricing Advisory
Transfer pricing advisory is essential for:
- Multinational corporations
- Saudi entities with foreign shareholders
- Groups with cross-border intercompany transactions
- Holding companies and investment vehicles
- Firms subject to Zakat and Corporate Income Tax
MFD helps assess exposure and coordinates with certified professionals to manage transfer pricing risks.
Taxation Advisory Services We Offer
What Are The Legal And Procedural Requirements For Transfer Pricing In Saudi Arabia?
Saudi Arabia follows a three-tiered documentation approach aligned with OECD guidelines:
- Master File: Group-wide transfer pricing policies and structures
- Local File: Entity-specific transaction details and justifications
- Country-by-Country Report (CbCR): Required for groups with consolidated revenue above SAR 3.2 billion
Entities must submit disclosures via ZATCA’s portal and maintain documentation for audit readiness.
What Documents Are Needed For Transfer Pricing Advisory In KSA?
Typical documentation includes:
- Intercompany agreements and transaction records
- Financial statements and trial balances
- Transfer pricing policies and benchmarking studies
- Master File and Local File (if applicable)
- CbCR filings and group structure details
- ZATCA disclosure forms and audit correspondence
MFD assists in compiling and reviewing these documents for compliance and audit defense.
Transfer Pricing Advisory Cost, Duration, And Process
Estimated Pricing Advisory coordination fees start from SAR 12,000, depending on transaction volume, group structure, and documentation scope.
Estimated Timeline Initial documentation and structuring typically take 2 to 4 weeks, with ongoing support aligned to filing and audit cycles.
How The Process Works MFD begins by reviewing intercompany transactions, assessing risk exposure, and coordinating with certified advisors. We support documentation, benchmarking, and ZATCA engagement.
How Transfer Pricing Advisory Supports Business Growth In Saudi Arabia
Strategic transfer pricing helps businesses:
- Minimize tax risks and optimize group profitability
- Defend pricing structures during audits or disputes
- Improve transparency and governance
- Align with global tax standards and investor expectations
- Support cross-border expansion and restructuring
MFD ensures that pricing strategies are regulator-approved and commercially viable.
Contact Us
Book an Appointment with Us
Schedule a consultation with MFD Business Solutions today and discover how our expert Actuarial Valuation and financial consulting services can enhance the accuracy and reliability of your financial records.
What Challenges Do Companies Face With Transfer Pricing In Saudi Arabia?
Common issues include:
- Inadequate documentation or benchmarking
- Misalignment with ZATCA or OECD standards
- Errors in intercompany agreements
- Exposure to audit penalties or disputes
- Lack of internal tax expertise
How Our Services Solves Transfer Pricing Issues
MFD Services offers structured coordination for transfer pricing advisory:
- Documentation planning and review
- Liaison with certified tax professionals
- Benchmarking and policy alignment
- Audit preparation and dispute support
- Post-filing compliance and monitoring
We ensure that transfer pricing strategies are accurate, defensible, and regulator-compliant.
Why Choose MFD For Transfer Pricing Coordination In Saudi Arabia
MFD Services is trusted by multinational groups, holding companies, and investment firms for transfer pricing coordination. We work with licensed professionals to ensure that documentation and pricing structures meet ZATCA and OECD standards.
Structure Defensible, Regulator-Aligned Transfer Pricing With MFD Coordination
MFD Services helps businesses navigate ZATCA’s transfer pricing regulations by coordinating with licensed tax advisors to prepare Master Files, Local Files, and benchmarking studies. We ensure that intercompany transactions are documented, justified, and audit-ready — supporting compliance, profitability, and global tax alignment.
FAQ's
It refers to the pricing of related-party transactions, which must reflect market value under ZATCA’s arm’s length principle.
Entities with related-party transactions, especially those subject to Corporate Income Tax or Zakat.
No, MFD coordinates with licensed tax advisors to manage documentation and compliance.
Typically 2 to 4 weeks, depending on transaction complexity and documentation readiness.