Master File Compliance for International Tax Reporting
In today’s global economy, multinational enterprises (MNEs) are expected to maintain transparency in their tax reporting and transfer pricing documentation.
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At Vensor Business Setup, we specialize in helping UAE-based and international companies prepare, review, and maintain Master File Compliance in accordance with global tax reporting standards. Our team ensures that your documentation is not only accurate but strategically aligned with your business operations and transfer pricing model.
The Master File is part of a three-tiered transfer pricing documentation structure under BEPS Action 13 (alongside the Local File and Country-by-Country Report). It includes:
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Organizational structure of the multinational group
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Description of business activities and intangibles
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Intercompany financial arrangements
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Global transfer pricing policies
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Consolidated financial information of the group
Our Master File Compliance Services Include
Documentation Preparation
We help you prepare your Master File based on the OECD guidelines and UAE transfer pricing regulations, including all essential elements related to your global operations.
Data Collection & Review
We collaborate with your finance and tax teams to collect, verify, and structure the relevant group-level information, ensuring consistency and accuracy.
Intercompany Analysis
Our experts assess your group’s intercompany transactions, pricing policies, and functional profiles to ensure alignment with arm’s-length principles.
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Who Needs to Prepare a Master File?
As per UAE’s Federal Tax Authority (FTA) guidelines:
Entities that are part of a multinational group with consolidated revenues above the threshold (e.g., AED 3.15 billion) may be required to maintain a Master File.
Businesses engaging in cross-border related party transactions must ensure documentation readiness in case of audit or disclosure requirements.
Frequently Asked Questions
Is the Master File mandatory for all businesses in the UAE?
No. The Master File is typically required for multinational groups exceeding specific revenue thresholds or engaging in material related-party transactions. We can assess your obligation based on your group profile.
How often should the Master File be updated?
It must be updated annually or when there are significant changes in group operations, structure, or transfer pricing arrangements.
What’s the difference between a Master File and a Local File?
The Master File gives a global overview of the entire group’s activities, while the Local File focuses on the entity’s specific related-party transactions within the UAE.
What happens if we fail to maintain a compliant Master File?
Non-compliance may lead to penalties, reputational damage, and increased scrutiny by the FTA or international tax authorities.
Can you help with both Master File and Local File preparation?
Absolutely. Vensor Business Setup provides comprehensive transfer pricing documentation services, including Master File, Local File, and Country-by-Country Reporting.