One stop solution for Country-by-Country-Reporting (CbCR)
CbCR UAE: Country-by-Country Reporting in UAE
Is a part of a strategy to fight against damaging tax practices. It is one of the action plans under the BEPS (Base Erosion Profit Sharing) project of OECD and G20 nations. The key aim is to prevent any kind of tax avoidance practices adopted by Multinational Enterprises.
In line with this goal, UAE issued the Cabinet Resolution No. 32 of 2019 on Country-by-Country Reporting. This resolution made the CbCR requirements mandatory for all entities for financial reporting years starting from January 1, 2019. Later, Cabinet Resolution No. 44 of 2020 replaced the 2019 resolution.
The Resolution mentions the eligibility conditions for the applicability of CbCR requirements. If entities meet the following conditions, then CbCR regulations apply to them:
Any entity fulfilling these conditions must suffice the filing and notification requirements. They must file a CbC report with stipulated information and data within 12 months from the end of the reporting year. They must submit a CbCR notification before the last day of the financial reporting year.
The entity is tax resident in UAE
The entity is part of a Multinational Group of Enterprises (MNEs)
The entity has consolidated revenues equal to or more than AED3.15 billion in the financial year preceding the financial reporting year
Your CbCR compliance is our responsibility.
What is our role here?
CbCR UAE helps you with an understanding of your entity’s applicability for CbCR rules. We assist you with complying with the CbCR filing and notification requirements. Our expertise lies in ensuring your compliance with CbCR requirements before the deadline dates.
An invite to CBCR UAE for CbCR compliance services
Testimonials
I hired CBCR UAE for CBCR compliance services on the recommendation of a friend. Their support in the analysis of our business operations has been impressive. They also supported in complying with the filing and notification requirements of CBCR.
I am impressed with their services. They have become an integral part of our team. You can always find them when you need some guidance and advice for CBCR compliance matters.
I would be happy to recommend CBCR UAE to my friends, business associates, or anyone looking for CBCR services in UAE. Their approach to providing CBCR services is a combination of friendly and professional. Their business advisors helped my firm with A to Z of CBCR services.
Their commitment to ensuring our complete compliance is praiseworthy. They even provide consulting and support services. Overall, the team has proven to be an invaluable contribution to our business operations.
The team at CBCR UAE is very approachable when you have queries and concerns on CBCR compliance. They are always ready with their valuable advice and solutions for your problems. We hired them for handling our CBCR compliance and we are happy to be associated with them. So, if you are looking for timely, professional, and accurate CBCR compliance services, look no further than UAE CBCR.
FAQs
With a CBC report, local tax authorities get complete visibility of:
- Revenues
- Income
- Retained earnings
- Capital
- Tangible assets
- Employees
- Tax paid and accrued
- Business activities in which the MNE Group operates
Thus, with such CBCR requirements, tax authorities are fully aware of the jurisdiction for generation of the economic value. They match this information with that MNE Group’s profits allocation and tax payments. If the jurisdiction is the same, then transfer pricing concerns are not there. If jurisdictions do not match, the authorities need to study the gaps and find the reasons.
- Two or more companies with tax residence in different jurisdictions, or one single company having its tax residence in one country but being subject to tax in another country for the activity it carries out through a permanent entity in that another country.
- Having a total consolidated group revenue equal to or more than AED3.15 billion during the fiscal year immediately preceding the reporting fiscal year as indicated in the consolidated financial statements for that preceding fiscal year.
- Owns directly or indirectly a sufficient interest in one or more CEs of such MNE Group such as it is required to prepare Consolidated Financial Statements under the accounting principles generally applicable in its jurisdiction of tax residence, or be so required if its equity interests were traded on a public securities exchange in its jurisdiction of tax residence;
- Its Group does not include any other CE that owns directly or indirectly an interest described in the above point in such entity.
- If the UPE fails to submit the CBCR notification before the deadlines, it has to pay an administrative penalty of AED1.0 million. If the entity still fails to submit the notification, a per-day penalty of AED10,000.0 is imposed, up to a maximum of AED250,000.0.
- If the reporting entity fails to submit the CBC report before the deadlines, it has to pay an administrative penalty of AED1.0 million. If the entity still fails to submit the report, a per-day penalty of AED10,000.0 is imposed, up to a maximum of AED250,000.0.
- If the reporting entity fails to maintain the records and documents for at least five years after the reporting to the Competent Authority, the administrative penalty amount is AED100,000.0.
- If the reporting entity fails to provide the relevant information as requested to the Competent Authority, the penalty amount is AED100,000.0.
- If the reporting entity provides inaccurate or incomplete information, the penalty amount is AED50,000.0 to a maximum of AED500,000.0.