DUBAI, (Pakistan Point News - 11th Dec, 2019) The Ministry of Finance, MoF, has announced that it has started to receive Country-by-Country Reporting, CbCR, notifications, through the CbCR notification system.
The move is in accordance with Cabinet Resolution No. 32 of 2019 regarding Country-by-Country Reporting in the United Arab Emirates. The purpose of CbC Reporting is to eliminate any gaps in information between the taxpayers and tax administrations about where the economic value is generated within the Multinational Groups of Entities, MNEs, and whether it aligns with where profits are allocated and taxes are paid globally.
Younis Haji Al Khoury, Undersecretary of MoF, stressed the need to register with the CbCR notifications system before the deadline of 31st December 2019 prior to the end of the current fiscal year.
He said, "CbC Reporting is part of Action 13 of the Base Erosion and Profit Shifting, BEPS, initiative led by the Organisation for Economic Co-operation and Development, OECD, and the Group of Twenty, G20, industrialised nations. MNEs are required to file a CbC Report that should provide a breakdown of the Multinational Group’s global revenue, profit before tax, accrued income tax and certain other indicators of economic activities for each jurisdiction in which the MNE operates."
According to the Resolution, CbCR requirements are applicable to ‘financial reporting years’ starting on or after 1st January 2019. Accordingly, for the financial reporting year starting on 1st January 2019, the CbC report must be submitted latest by 31st December 2020.
