- August 13, 2026
- 10:42 am
— VIDEO GUIDE
Intercompany Loans in the UAE: How Is an Arm’s-Length Interest Rate Determined?
Intercompany loans require more than choosing a benchmark rate and adding an arbitrary spread.
This video explains how loan characteristics, borrower creditworthiness, implicit group support and market evidence can influence an arm’s-length interest rate.
What You Will Learn
How Related Party loans are analysed
Loan amount, currency and tenor
Borrower creditworthiness
Credit ratings
Implicit group support
Comparable independent loans
CUP methodology
Credit spreads
Interest-rate benchmarking
Supporting documentation
Key Takeaway
The question is not whether an interest rate looks reasonable. The question is whether an independent lender would have charged that rate to that borrower under comparable circumstances.
[ Embed YouTube Video Here ]
Video Transcript
Insert the complete approved Video 4 script.
Frequently Asked Questions
A benchmark rate may form part of the pricing, but the credit spread and other terms should also be commercially supportable.
Higher credit risk can influence the return an independent lender would require.
No. Separate Corporate Tax interest-deduction rules may also apply.
About thetransferpricing.com
thetransferpricing.com is a specialised transfer pricing brand of Prime Partners Global LLC-FZ, providing transfer pricing advisory, benchmarking, documentation and related economic analysis support.
Disclaimer
Content on this page and in the accompanying video is provided for general informational and educational purposes only and does not constitute tax, legal, accounting or transfer pricing advice. The appropriate treatment of any transaction depends on the applicable legislation and the specific facts and circumstances.