Page 19 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE

‘financial reporting years’ starting on or
Country-by- Country
after January 1st 2019. The reporting is on an
Reporting (CbCR) annual basis.

The ultimate parent entity (UPE) of a
Country by Country (CbC) Reporting is
multinational group of companies (MNE)
part of Action 13 of the Base Erosion and
who is a “tax resident” in UAE and its
Profit Shifting (BEPS) initiative led by the
consolidated revenues equal to or are more
Organisation for Economic Co-operation
than AED 3.15 billion in the previous financial
and Development (OECD) and the Group of
year is subject to the CbCR rules.
Twenty (G20) industrialised nations.

BEPS Action 13 requires large Multinational
Groups of Entities (MNEs) to file a CbC Report
that should provide a breakdown of the
Multinational Group’s global revenue, profit
before tax, income tax accrued, and some
other indicators of economic activities for
each jurisdiction in which the MNE operates.
The purpose of CbC Reporting is to
eliminate any gap in information between
the taxpayers and tax administrations
with regard to information on where the
economic value is generated within the MNE
Group and whether it matches where profits
are allocated and taxes are paid on a global
level.

In the UAE, CbCR requirements are applicable
to the UAE-headquartered MNE Groups with

in the UAE (unless exemptions apply) to
prepare and file a Ultimate Beneficial Owner
(“UBO”) register, Nominee Director register (if
Ultimate Beneficial Owner
applicable) and a Partners or Shareholders
register, with the relevant authority within
sixty (60) days from the date the Resolution
Beneficial Owner Procedures came into
came into effect, being 27 October 2020, or
effect in 2020. The Resolution introduces
by the date the entity is established.
new requirements for entities to disclose its
beneficial owners. The main purpose is to
The Resolution applies to all entities licensed
enhance transparency of entities registered
in the UAE, excluding the following:
in the UAE, as well as to develop effective
and sustainable executive and regulatory
• Entities in financial free zones (Abu Dhabi
mechanisms and procedures in respect of
Global Markets and Dubai International
beneficial owner data.
Financial Centre); and
• Entities which are directly or indirectly
This Resolution requires entities licensed
wholly owned by Federal or Emirate
government.

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