Overview
UAE is a signatory and a member of the Organization for Economic Co-operation and Development (OECD) Inclusive Framework. OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS) has identified 15 Action Points that members need to implement to ensure free trade and economic development.
In response to an assessment of the UAE’s tax framework by the European Union Code of Conduct Group on Business Taxation, the UAE issued Economic Substance Regulations on 30 April 2019. These Regulations were subsequently amended by Cabinet of Ministers Resolution No. 57 of 2020 on 10 August 2020.
The Regulations requires all Licensees (both onshore and offshore/ free zone companies) that carry out any of the defined Relevant Activities to maintain and demonstrate an adequate economic substance in the UAE appropriate to the level of activities they undertake in the UAE.
How KPI Experts Assist You
- Consolidating the financials of the group companies
- Preparation of the detailed CbC Report to ensure that they are filed correctly with the Regulatory Authority.
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Reach out to us for assistance with Country by Country Reporting in UAE.
Frequently Asked Questions
Country by Country Reporting is a part of Action 13 of the Base Erosion and Profit Shifting initiative lead by OECD. Multinational Group of Entities (MNE) are required to provide a breakdown of the Multinational Group’s global revenue, profit before tax, income tax accrued and few other economic indicators for each jurisdiction that the MNE operates in.
The purpose of CbC Reporting is to eliminate any gap in information between the taxpayers and tax administrations with regards to information on where the economic value is generated within the MNE Group and whether it matches where profits are allocated, and taxes are paid on a global level.
MNEs headquartered in the UAE which meets the following criteria should comply with CbC Reporting requirements in the UAE:
- MNE Groups i.e., Groups which consist of two or more enterprises that are residents for tax purposes in different jurisdictions; and
- Have a total consolidated revenue that is equal to or more than AED 3.15bn for the financial year preceding the reporting year concerned.
KPI has an in-house team of tax professionals and consultants that can assist you in getting a clear understanding of the CbCr UAE requirements, conducting relevant studies and assist with relevant compliance. Reach out to us for assistance with Country by Country Reporting in UAE on [email protected] or call us on +97144551010