- August 13, 2026
- 10:43 am
— VIDEO GUIDE
Management Fees & Intra-Group Services in the UAE: Benefit Test, Cost Allocation & Mark-Ups
An invoice, agreement and cost-plus mark-up do not automatically make a management fee arm’s length.
This video explains how businesses should first establish whether a genuine service was provided and whether the recipient received an economic or commercial benefit.
What You Will Learn
Benefit test
Shareholder activities
Duplicated services
Incidental benefits
Cost pools
Allocation keys
Pass-through costs
Arm’s-length mark-ups
Low value-adding services
Supporting documentation
Key Takeaway
Before deciding what mark-up should apply, first determine whether there is actually a service worth paying for.
[ Embed YouTube Video Here ]
Video Transcript
Insert the complete approved Video 5 script.
Frequently Asked Questions
No. A simplified 5% approach applies only where the relevant conditions for qualifying low value-adding services are satisfied.
It considers whether an independent business would reasonably have paid for the activity or performed it internally.
Costs relating solely to the shareholder’s ownership activities should not automatically be treated as chargeable intra-group services.
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.