Middle East: Tax

Safe harbor rules in transfer pricing are essential regulatory tools designed to simplify and expedite tax compliance, especially in transactions between related parties within multinational groups.

Centralized and Decentralized Models in transfer pricing are key to ensuring fair pricing and preventing profit shifting across jurisdictions. Transfer pricing between related parties represents one of the fundamental pillars of the international tax system, particularly in light of the continuous expansion of multinational enterprises and the increasing complexity of cross-border transactions. This reality has necessitated the development of clear rules to ensure that such transactions are conducted on fair terms reflecting their true economic value, thereby preventing artificial profit shifting between jurisdictions.

Prepared by our Partner, Steeve Zouein, and Junior Associate, Muhanad Zeitouni, this article examines Saudi Arabia’s Special Economic Zones (SEZs)...