Country by country reporting

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    Country By Country Reporting In Dubai

    CBC Reporting aims to bridge any disparity between taxpayers and tax bodies regarding where economic value is generated within an MNE Group and whether this equates to where profits are distributed. Income is taxed on a global scale.

    Action 13 of the Base Erosion and Profit Shifting (BEPS) programmed, led by the Organization for Economic Co-operation and Development (OECD) and the Group of Twenty (G20) developed nations, is Country by Country Reporting dubai; initially, it was introduced in the UAE from the year 2019 through a cabinet resolution number 32 of 2019, which is now replaced by the resolution of number 44 of 2020.

    It mandates multinational businesses (MNEs) to submit crucial information about their operations and income yearly and for each tax jurisdiction in which they operate. Creating country-based reports for multinational corporations and automating the sharing of their data allows tax authorities to evaluate them better. CbCR (country-by-country reporting) aims to provide the tax department with additional information about cross-border business transactions.

    The main purpose of CBC reporting is to provide capital authorities, visibilities to revenue, Income, Tax, paid the tax, acute provide local tax, retained earnings, tangible assets, and other activities.

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    How to know that country-by-country reporting applies to you?

    As cabinet resolution No. 44 of 2020, country by country reporting Dubai will be applicable if these two conditions are met:

    • If you are organization is the parade company of the MNE group in Dubai.
    • In case the revenue of the mne is equal to or more than AED 3.5 billion in the preceding financial year.

    Country by country report:

    The UAE group of companies that make the criteria mentioned should comply with CBC reporting legislation in Dubai. Country by country report includes qualitative and quantitative information about the MNE group, such as employees, profits, revenue, descriptions, and business.
    Fundamentally, the submission of the country by the country report should be within 12 months from the end of the promoting air of the among grow the group whose financial year starts on 1st January 2019 and is complete by the 31st August 2019 the country where the country report should be filed no later than the 31st December 2020.


    Those who fail to comply with the country-by-country reporting requirements will be served with penalties. Some penalties are as follows:

    • Those who failed to file the CBC are on time, and an administrative fine of up to AED 1,000,000 will be given, up to AED 250,000.
    • Those who fail to provide full and accurate information in the CBC are noticed the administrative fine of no less than AED 50,000, which is applicable will be given to those who fail to provide accurate information in CBCR notification
    • Those who failed to provide the information and documentation for 5 years will be subject to AED 1000,000.
    • Those who failed to provide the requested information were fined AED 100,000.

    The organization’s economic operation and development requirements through its action 13 of base Erosion and profit shifting are said to be country by country. Reporting Dubai, the main purpose of CBC reporting is to eliminate the gap between taxpayers and the tax administrations concerning the information on where the economic value is generated in MNE groups.

    It is covered by the UAE’s cabinet resolution number 44 of 2020, replacing the existing cabinet resolution number 32 of 2019.

    • Basic notifications to the organization by the Ministry of Finance provide 14 days Grace period to comply.
    • Mo f to issue penalty notices, an organization doesn’t comply with reasonable excuses.
    • The identification of non -compliances by MOF.

    ( these steps are for the period of 6month).

    • The organization can appeal within 30 business days.
    • After the appeal’s rejection, the organization has to pay the penalty within 30 business days.
    • Ministry of Finance appeal committee to reject or confirm the appeal within 60 days.
    • The action 13 report sets out the basic free uses for information which is contained in the CBC report that is named as:

      • To evaluate high-level Transfer pricing risk
      • For statistical and economics analysis.
      • To evaluate other BEPS-related risks.
    • It is expected to give tax administration are good Global picture where MNE’s profit, economic activities, and Taxes are reported.
    • The basic ability to evaluate the pricing and other BEPS risk on a high level so that they can focus on audit resources to be more effective.
    • It is expected to give tax administration a global picture where profit, tax, and other economic activities are reported.

    The UAE test resident ultimate parents organizations of the MNR group of CBC legislation are applicable to submit a CbCR notification in the UAE.

    It can be filed before the end of the financial year of the UPE.

    The key benefits of introducing Cbc reporting UAE are as follows.

    • The substantial network of Dubai exchanges the information framework of 49 agreements, ensuring minimum filing requirements in other jurisdictions.
    • Through CbCR information, groups can get an aerial view and identify the risk early.
    • With the help of CbCR information, groups can take proactive steps to eliminate the risk.