Transfer Prices are the prices at which a business transfers physical goods and intangible property or provides services to the associated businesses. A three-tiered approach has been adopted by the corporate tax regime in the UAE to transfer pricing documentation in accordance with the Transfer Pricing Guidelines from OECD. A shift in income between different jurisdictions having varied tax rates impacts the effective tax rate of entities with a presence in multi jurisdictions. An effective transfer pricing policy could curb this shift in income. The three-tiered Transfer Pricing documentation includes the following a- Master file b- Local file, and c- Country-by-country reporting. Businesses will need to prepare and maintain a Master file and a Local file when certain materiality thresholds are met.