Country-by-Country Reporting (CbCR) in the U.A.E was issued on the 30th of April 2019 vide Cabinet Resolution No. 32 of 2019.
CbCR is a 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 G20.
BEPS Action 13 requires large Multinational Groups of Entities (MNEs) to file a CbCR 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.
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 the profits allocated and taxes are paid on a global level.