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.