Transfer Pricing

Manufacturing Group - Saudi Arabia Restructuring

Complete transfer pricing restructuring for a manufacturing conglomerate with operations across the Kingdom.

Client

Manufacturing Conglomerate

Industry

Manufacturing & Industrial

Timeline

8 months

Key Results

12
Entities Restructured
28%
Cost Reduction
100%
Compliance Level
Complete
Documentation Coverage

Challenge

A large manufacturing group with 12 entities across Saudi Arabia had non-compliant transfer pricing policies that exposed them to significant audit risks and potential penalties. The company lacked proper documentation and had pricing policies that didn't reflect arm's length principles.

Solution

We conducted a comprehensive transfer pricing restructuring that included economic analysis of all intercompany transactions, development of arm's length pricing policies, and creation of robust documentation packages. Our approach ensured full compliance with Saudi transfer pricing regulations while optimizing the group's overall tax position.

Results

  • Achieved full compliance with Saudi transfer pricing regulations
  • Reduced overall tax costs by 28% through legitimate optimization
  • Developed comprehensive transfer pricing documentation for all entities
  • Created audit-ready defense files and economic analyses
  • Established ongoing monitoring and update procedures

Services Provided

Transfer Pricing StudyEconomic AnalysisDocumentation PreparationCompliance Monitoring
"The transfer pricing restructuring delivered by GulfTaxes not only ensured our compliance but also resulted in significant cost savings. Their expertise in Saudi regulations was invaluable."
Khalid Al-Rashid
Group Tax Director, Industrial Holdings

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