Country by Country Reporting (CbCR) is part of Action 13 of the Base Erosion and Profit Shifting (BEPS) initiative led by the Organization for Economic Co-operation and Development (OECD) and the Group of Twenty (G20) industrialized nations. BEPS Action 13, requires large Multinational Groups of Entities (MNE Groups) 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 group operates.

The purpose of CbCR is to eliminate any gap in information between the taxpayers and tax administrations with regards 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 reporting fiscal years starting on or after 1 January 2019.

The BEPS Action 13 Report sets out three permitted uses for information contained in CbC Reports, namely:

• To assess high-level transfer pricing risk;
• To assess other BEPS-related risks; and
• For economic and statistical analysis.

KTC UAE can assist you following ways to comply with CbC reporting.

• Analyze the group structure & identify the entities qualify for CbC as the Ultimate Parent Entity (UPE) of MNE group.
• Assist you to identify the entities which are falling under other Tax jurisdictions in another country.
• Guidance in preparation of information for CbC reporting & notification.
• Helping you in submission of the notification information & CbC report with the MoF.