Lesson 2 of 26

Majid sets up the transfer-pricing records

For: Tax managerAbout 7 min

What you will be able to do

This lesson is for the tax manager. Transactions with related parties, such as a management fee paid to the parent company, must be priced at arm's length and disclosed with the corporate tax return. You will ask Majid, the AI agent for corporate tax, to set up the 2026 transfer-pricing records of Meridian Souq Trading LLC and prepare the disclosure, follow its to-do list, and check the records in Transfer Pricing. The records stay drafts for you to review.

Before you start

  • You are signed in as the tax manager of Meridian Souq Trading LLC.
  • The related-party register lists the group companies, and the ledger holds the 2026 management fees, fixture purchases and goods sales between them.

Steps

  1. 1

    Ask Majid to set up the records

    In the AI team's Chat for Meridian Souq Trading LLC, type @ and pick Majid, then type: please set up our 2026 transfer-pricing records for Meridian Souq Trading LLC's related-party transactions (the management fees we pay Holdings, the fixtures we buy from Manufacturing and the goods we sell to Hospitality) and prepare the transfer-pricing disclosure for my review.

    • Type Message to the AI team: @Maj
    • Choose MMajidAICorporate tax & transfer pricing
    • Type Message to the AI team: @Majid please set up our 2026 transfer-pricing records for Meridian So…
  2. 2

    Select Send

    Select Send. Your message appears on the right, and Majid's card under it is marked Working.

    • Select Send
  3. 3

    Read Majid's to-do list

    Majid writes its to-do list on its card: find the 2026 totals of the three related-party transactions, create the three records, generate the disclosure form for your review, and report back. A tick marks what is done, the spinning mark what Majid is doing now, and the line Now: what it did last. Under the card are Interrupt and Stop, in case you need to change course.

    The screen at step 3: Read Majid's to-do list
  4. 4

    See every item ticked

    About two minutes later, all four items are ticked and the card shows Done. Under the third item Majid notes that the disclosure form was assembled but not saved, because no disclosure is required. The line under the list counts the steps and the four changes Majid made.

  5. 5

    Read Majid's answer

    Majid's green Answer lists the three draft records: the management fees paid to Holdings, 270,000 dirhams; the fixtures bought from Manufacturing, 422,550; and the goods sold to Hospitality, 119,550, each with its invoices. It explains the pricing method it chose for now, and that the related-party total is below the thresholds, so no disclosure is due for 2026, although arm's-length documentation is still needed. Majid ran no adjustments, because they need each party's actual margin.

  6. 6

    Check the records in Tax Intelligence

    Open Tax Intelligence, the Analysis tab and Transfer Pricing. The summary counts 3 records with a related-party value of 812,100 dirhams, none documented yet. Below, TP Records lists the three records Majid created, each with its related party, amount, method and the status Draft. They are yours to review, assess and complete.

How to check it worked

Tax, Transfer Pricing lists three 2026 draft records, one per kind of related-party transaction, with amounts that match the ledger. Majid's answer says what it set up, whether a disclosure is due this year, and what is left for you.

Common mistakes

  • Leaving the drafts unchecked. Each record should match the ledger; correct it in Transfer Pricing if it doesn't.
  • Taking the method Majid proposes as settled. The method is a judgement; Majid explains its choice, and you decide.
  • Filing the disclosure from the chat. It is a draft until a person reviews it with the return.

Check your understanding

  1. 1. Majid finds that no transfer-pricing disclosure is due this year. What does that mean?

    1. A.Nothing needs to be documented
    2. B.The totals are below the disclosure thresholds, but the prices must still be at arm's length and documented
    3. C.The records were deleted
    4. D.The return is filed
    Show answer

    Answer: B. The totals are below the disclosure thresholds, but the prices must still be at arm's length and documented

    Below the thresholds no disclosure form is filed, but the arm's-length rule and its documentation still apply.

  2. 2. Where do you review the records Majid created?

    1. A.In Tax, Transfer Pricing
    2. B.In Settings
    3. C.In the e-mail inbox
    4. D.Only in the chat
    Show answer

    Answer: A. In Tax, Transfer Pricing

    The chat reports the work; the records are in the module, where you review and change them.