CbCR Notification Services In UAE

Country by country reporting services (CbCR) in UAE

CBCR UAE is a prominent professional services provider in UAE. Our expertise lies in helping our clients with CBC reporting and notification services. We provide full guidance to you on filling up the relevant forms and submitting the same on the CBCR portal.

Want to know how our services help your business with Country-by-Country reporting?

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CbCR notification submission services in Dubai

We assist our clients in submitting the CbCR notification on time. We handhold you through the entire process of making changes in the CbCR notification if any. Our experienced analysts are thorough with the notification submission process. This ensures an accurate and timely submission of your CbCR notification.

All the applicable entities for CbCR need to submit the CbCR notification on the CbCR portal. For the notification, the entities submit a form containing the following information:

Proof that the entity submitting the CbCR notification is the UPE of the MNE Group, resident in the UAE, and the UAE CbCR requirements apply to such MNE group

Information proving the identity of the entity such as trade license number, name, address, financial year-end, and nature of the business activity

We ensure that the entities submit the CbCR notifications before the last day of the financial reporting year of the MNE. Also, we help our clients in updating the changes in entity information on the CbCR portal. We need to send a request for any changes in the entity’s address, year-end, or tax ID number through the portal.

Country by Country Reporting and Notification Services

CBC Reporting Services In UAE

CbCR Notification Services In UAE

Submitting accurate and complete CbC reports is essential for compliance with the CbCR requirements of the government. And, who better than UAE CbCR for ensuring correct, complete, and timely submission of CbC reports? Our competent and expert team of regulatory analysts ensures your compliance with CbCR requirements.

As per the CbCR legislation, all the applicable entities for CbCR need to submit CbC reports on the relevant portal. The UPE of the MNE Group headquartered in UAE submits these details on the portal. The filing happens in XML format.

The CbC report requires the entity to file all the quantitative and qualitative information about the MNE Group. The entity needs to fill and submit three tables. We help you in understanding all the relevant information and file and submit them on the portal.

Table 1

In table 1, you need to fill in the quantitative information per tax jurisdiction. This includes stated capital, revenues, employee count, taxes accrued and paid, etc. You need to mention the revenues for both related and unrelated parties as well as the total revenues.

The table also includes a column for reporting tangible assets other than cash and cash equivalents. All this information is for the fiscal year of the MNE Group. It is very essential to mention all amounts in the stated functional currency of the MNE Group.

Table 2

In table 2, you need to provide the qualitative information for every constituent entity of the MNE Group. You need to provide information on the jurisdiction of tax residence. If the jurisdiction of incorporation or organization is different from the tax residence, then that information is also essential in Table 2.

After that, you need to provide information on the key business activities of CEs in that year. There are various business activities listed in the table. You are just required to mark a tick against the one you engage in. If the option of other is selected, you must describe the activity.

Table 2 also requires information on Parent Entities (PEs). These are listed by reference to the tax jurisdiction in which it is situated. You must also provide the name of the legal entity of which it is a PE. This table also requires you to fill in information about the Tax identification number and address.

Table 3

In table 3, you need to provide any additional information for a better understanding of tales 1 and 2. This information will support the information in the other two tables such as assumptions, source of information, etc. The types of information provided in this table include:

Source of information: You need to mention the sources from where you have obtained the information in the CBC report. The sources include financial statements, internal management accounts, and any other. You also need to mention the change in sources, if any, along with the reasons for the change.

Period of information: The period for which the information is provided must be mentioned in the table. Foreign exchange rates: You must mention the exchange rates used along with the source of such exchange rates. It is also essential to mention any change in approach from the previous years and the reasons for the same.

Assumptions for the number of employees: You need to mention the approach used for calculating the number of full-time employees. The approach, which may be any one of year-end, the average for the year, or any other, must be consistent. You also need to include the information on whether independent contractors or seconded staff has been included or not.

Other disclosures: This may include the inclusion or exclusion of a factor from revenues, any negative accumulated earnings, and reasons for not including specific information for a Constituent Entity.

Pass through this way for effective compliance.

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Country By Country Reporting Notification Services In UAE

CbCR Records management system

The CbCR legislation requires reporting entities to maintain effective records for at least five years after the submission of the CbC report. We assist you in complying with this requirement. We create the right system of storing your records physically or electronically as per the requirements. We also guarantee an English translation of these records, if these are maintained in any language other than English.

The way to achieve compliance with CbCR requirements goes through CbCR UAE.

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Testimonials

Managing Director, Cosmetic firm

I hired UAE CBCR 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.
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Director, Electronics firm

I would be happy to recommend UAE CBCR 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.
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Owner, Professional services firm

The team at UAE CBCR 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.
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FAQs About CBCR Notification Services In UAE

Transparency for tax practices and administrative procedures is in focus in current times. This is because governments intend to understand the jurisdiction of the financials of an MNE group. They intend to have a closer look at the jurisdictions for generation of revenues and payment of taxes.

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
Details on all these data points give a clear picture to the tax authorities. They understand the global allocation of income and taxes in a group. This is how they can detect any possibility of transfer pricing practices in a group. If there exist any such practices, the relevant authorities can conduct further audits.

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.
The MNE (Multinational Group of Enterprises) Group is a group that includes:
 
  • 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.
An Ultimate Parent Entity (UPE) is defined as the Constituent Entity (CE) in the MNE Group that fulfills the following conditions:
 
  • 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.
Compliance with CBCR requirements is essential for any UAE entity fulfilling the eligibility conditions. If the applicable entities do not comply with the requirements, the government levies a penalty on them. The various penalties are:
 
  • 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.