Country by Country Reporting (CbCR) in UAE

Country-by-Country Reporting (CbCR)is the requirement of the Organization for Economic Co-operation and Development (OECD) through its Action 13 of Base Erosion and Profit Shifting (BEPS). It is introduced in the United Arab Emirates (UAE) with effect from the year 2019 through Ministerial Resolution No. 32 of 2019.

As per Country-by-Country Reporting in UAE(CbCR) regulation, large Multinational Groups of Enterprises (MNEs) in UAE have to file a CbC report to the relevant authorities at the end of every year. It should provide details of the Multinational Group’s global revenue, profit before tax, income tax accrued etc. for each jurisdiction in which the MNE operates.

Is Country by Country Reporting(CbCR ) applicable for you?

The Country by Country Reporting in UAE CbCR requirements will be applicable to you if the following two conditions are met:

  1. if your entity is a tax resident in the UAE and are part of a Multinational Enterprises (“MNE”) Group &
  2. if the consolidated revenue of the MNE is equal to or more than AED 3.15 billion in the preceding financial year.

If both conditions are satisfied, you are coming under CbCR regulation in UAE.

Is there any deadline to comply the Country by Country Reporting in UAE (CbCR) regulation ?

Yes, there are two deadlines given in the regulation. One is for the CbCR notification and the other is for the CbC Reporting.

  • Applicability of CbCR Notification

If your company is in the UAE and is part of such MNE Group, you should submit the CbCR Notification to the MOF before the end of the current Financial Year.

For example;

  1. If the financial year of MNE Group is 1st January 2019 to 31st December 2019, then the last date for submitting CbCR Notification is 31st December 2019.
  2. If the financial year of MNE Group is 1st April 2019 to 31st March 2020, then the last date for submitting CbCR Notification is 31st March 2020.

Note:

if your entity in the UAE is the ultimate parent company and is responsible to submit CbCR reporting to the MOF still you have to submit the CbCR notification before the due date.

Penalty

If CbCR(Country by Country Reporting) notification is not submitted within the due date, the administrative penalty will be charged AED 1,000,000/-. In addition to that AED 10,000/-per day (maximum up to 250,000/-) also will be charged.

  • Applicability of CbC(Country by Country Reporting) Reporting

It is applicable to such an MNE Group with an Ultimate Parent Entity resident in the UAE for the current financial year. Such a UAE company should submit the CbC Report to the MOF within 12 months from the end of the current financial year.

For example;

  1. If the financial year of MNE Group is 1st January 2019 to 31st December 2019, then the last date for submitting CbCR is 31st December 2020.
  2. If the financial year of MNE Group is 1st April 2019 to 31st March 2020, then the last date for submitting CbCR is 31st March 2021.

Penalty

If CBC Report is not submitted within the due date, the administrative penalty will be charged AED 1,000,000/-. In addition to that AED 10,000/-per day (maximum up to 250,000/-) also will be charged.

For Support on Country by Country Reporting (CbCR) in UAE
Contact Person: CA. Manu, CEO & Partner
Email: manu@emiratesca.com
Mobile: +971 50 282 8727
Phone: +971 4 2500290

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