Related-Party Transaction Software Track Group Transactions Against the Thresholds Before the Return Asks
Custom related-party transaction software for UAE groups and family businesses under corporate tax. Transactions with related parties must be disclosed in the return once they pass AED 40 million in aggregate, with per-category detail above AED 4 million and connected-person payments above AED 500,000, and transfer pricing records must be produced within 30 days if the FTA asks. Across a group, those thresholds are crossed quietly in ledgers nobody reads together. We build the register, the transaction log and the evidence file; your tax advisers determine arm's length pricing, and the filings stay with you.
Why related-party positions surprise groups at filing
Intercompany trading feels routine from inside a group: management fees, stock transfers, loans, a director's remuneration. Under corporate tax, each of those is a controlled transaction with a disclosure threshold attached, and the totals that matter accumulate across ledgers that nobody reads together until the return is being prepared, nine months after the year has already closed.
Thresholds crossed unseen
AED 40 million in aggregate, AED 4 million per category, AED 500,000 per connected person. Spread across entities and ledgers, a group can cross all three without anyone watching the running total.
No single register
Who counts as a related party or connected person is a defined question, but the answer lives in org charts and memory rather than a maintained register, so the transaction net is drawn from an incomplete list.
Evidence assembled backwards
Agreements, invoices and the advisers' benchmarking exist somewhere, but they are matched to transactions retrospectively at filing, when gaps are expensive to fix.
The 30-day window
Where transfer pricing documentation applies, the FTA can require it within 30 days of a request. A file that exists in principle but not in one place does not survive that deadline well.
The group's controlled transactions, held as one record
Four capability areas that turn scattered intercompany ledger lines into one register, one categorised log and one evidence file, fitted to a UAE group under corporate tax.
Related-party and connected-person register
A maintained register of related parties and connected persons per entity, kept current as the structure changes, so the transaction net is drawn from a complete list.
Categorised transaction log
Every controlled transaction logged against its category - goods, services, IP, interest, assets - with running totals per counterparty and per category across the group.
Threshold monitoring
The AED 40 million aggregate, AED 4 million category and AED 500,000 connected-person thresholds watched continuously, so finance knows the disclosure position months before the return.
Transfer pricing evidence file
Agreements, invoices and the benchmarking your advisers produce, held against each transaction and export-ready inside the 30-day window if the FTA asks.
The return is due nine months after the year ends, which is exactly when a group discovers what its intercompany position was. The groups that file calmly are the ones that watched the running totals while the year was still happening.
Your related-party position at a glance.
A gauge view shows the group position. Register coverage, transactions categorised and evidence linked tell finance whether the disclosure schedule is an export or an investigation.
Discuss your related-party platformWhy UAE groups invest in related-party control.
The disclosure thresholds and documentation duties behind the return.
Talk to us about related-party transaction software.
A short call surfaces whether a custom related-party system makes sense for you. Best positioned for groups, family businesses and holding structures with real intercompany trading across several entities. A company with one or two simple related-party transactions a year is well served by its accountant, and we will say so. We build the register, the log and the evidence system; we are not a tax adviser, a tax agent, or an auditor. Determining arm's length pricing, selecting transfer pricing methods and running benchmarking are your advisers' work, and the return itself is filed by you and them. BY BANKS is an independent software engineering company: we design and build the platform and hand it over, your team operates it. Law and authority names on this page are referenced descriptively to describe scope, and imply no affiliation, endorsement, or approval. Thresholds are point-in-time and subject to change. This is not tax advice.
How related-party transaction software works for a UAE group
The detail behind the headline - from the register and the categorised log, through threshold monitoring, to the evidence file. Records and evidence, not pricing judgements and not tax advice.
What changes, in practical terms
We do not determine arm's length pricing, select transfer pricing methods, or run benchmarking - that is your advisers' work. The system holds the register, the log and the evidence so their judgement lands on complete records.
The detailed questions UAE groups ask us
Expand each to see how bespoke related-party software actually works.
What does related-party transaction software actually cover?
Who this is for: groups, family businesses and holding structures with real intercompany trading across several entities. A company with one or two simple related-party transactions a year does not need it, and we will say so.
Four connected areas: (1) A related-party and connected-person register per entity. (2) A categorised transaction log with running totals. (3) Threshold monitoring against the disclosure triggers. (4) A transfer pricing evidence file. It records and evidences; it does not price or advise.
Which thresholds does it monitor?
The disclosure triggers in the corporate tax return: AED 40 million in aggregate related-party transactions, AED 4 million per transaction category, and AED 500,000 in payments or benefits to a single connected person including their related parties.
The platform watches the running totals across the group through the year. Whether a specific arrangement counts as a controlled transaction, and how it should be disclosed, stays with your advisers; the software makes sure the totals they judge from are complete.
Does it determine arm's length pricing?
No, and this matters. Arm's length analysis - selecting the method, running the benchmarking, concluding on the price - is professional transfer pricing work done by your tax advisers.
What the platform does is hold their output against each transaction: the agreements, the invoices, the benchmarking studies, the method applied. When the return's schedule asks for the method and the arm's length value, the answer is on file rather than in an adviser's old email.
Does it prepare the Master File and Local File?
It holds and assembles them rather than authors them. Where the AED 200 million revenue or AED 3.15 billion group revenue conditions under Ministerial Decision No. 97 of 2023 apply, your advisers prepare the Master File and Local File content.
The platform keeps those documents current against the transactions they describe, and holds the supporting records behind them, so a 30-day FTA request is met by an export rather than a reconstruction.
How does the register stay current?
The register holds each entity's related parties and connected persons - shareholders, directors, group entities, their relatives where relevant - with the basis for each entry recorded.
Structure changes flow in from your entity records, and periodic reviews are scheduled rather than left to memory. Determining who meets the legal definitions stays with your advisers; the software keeps the confirmed list maintained and versioned.
Does it cover domestic transactions or only cross-border?
Both. The arm's length principle under the UAE corporate tax framework applies to controlled transactions whether the counterparties are in different countries or across the corridor, including between free zone and mainland entities.
The platform logs controlled transactions wherever the counterparty sits. How each is treated in the return is your advisers' call; the record is complete either way.
What does this sit alongside in a typical group?
Related-party control sits between the finance stack and the advisers.
Accounting - transactions flow in from each entity's ledger, categorised against the register.
Advisers - benchmarking and documentation flow in from your tax advisers and are held against the transactions they support. Integration approach is scoped during discovery, and we do not ask you to replace tools that work.
How long to go live, and what does it cost?
A scoping phase maps your structure, where intercompany transactions arise, and what documentation exists today. It produces a current-state map, gap analysis, recommended scope, integration scope and a fixed-price build proposal.
A core build runs from there, with the register and transaction log first, then thresholds and the evidence file. Pricing varies by scope and entity count, so a bracket is not published; scoping produces a fixed-price proposal with no obligation to proceed.
How each role experiences the change
Different roles feel related-party control differently. Custom software works when it reduces friction for each one.
Finance
Running totals against every threshold through the year, so the disclosure position is known in month three rather than month fifteen.
Tax advisers
A complete, categorised transaction record to price and document from, so adviser hours go on judgement rather than ledger archaeology.
Group leadership
One picture of intercompany exposure across the structure, including the connected-person payments that surprise boards at filing.
The team on request day
A 30-day FTA documentation request met by an export with a checklist rather than a quarter-long reconstruction.
Questions We Get Asked
Who is related-party transaction software for?
Groups, family businesses and holding structures with real intercompany trading across several entities. A company with one or two simple related-party transactions a year is well served by its accountant, and we'll say so.
Which thresholds does it monitor?
The corporate tax return's disclosure triggers: AED 40 million aggregate related-party transactions, AED 4 million per category, and AED 500,000 to a single connected person. The platform watches running totals through the year; how arrangements are disclosed stays with your advisers.
Does it determine arm's length pricing?
No. Selecting methods, running benchmarking and concluding on prices is your tax advisers' work. The platform holds their output - agreements, benchmarking, methods - against each transaction so the return's schedule is answered from file.
Does it prepare the Master File and Local File?
It holds and assembles rather than authors. Where the AED 200 million revenue or AED 3.15 billion group thresholds under Ministerial Decision No. 97 of 2023 apply, your advisers prepare the content; the platform keeps it current and export-ready inside the 30-day request window.
Does it cover domestic intercompany transactions?
Yes. The arm's length principle applies to controlled transactions between UAE entities as well as cross-border, including free zone to mainland. The platform logs them all; treatment in the return is your advisers' call.
How does the related-party register work?
A maintained, versioned register per entity - shareholders, directors, group entities, connected persons - with the basis for each entry recorded and periodic reviews scheduled. Determining who meets the legal definitions stays with your advisers.
How does it connect to our accounting systems?
Transactions flow in from each entity's ledger and are categorised against the register. Adviser documentation is held against the transactions it supports. Integration is scoped during discovery; we don't ask you to replace tools that work.
What does it cost and how long does it take?
A scoping phase produces a current-state map, gap analysis, recommended scope and a fixed-price build proposal. The register and log come first, then thresholds and evidence. Pricing varies by scope and entity count; scoping gives a fixed price with no obligation to proceed.
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