Country by Country Reporting

Understanding Country by Country Reporting (CbCR):

CbCR is an integral part of BEPS Action 13, targeting large Multinational Groups of Entities (MNE Groups). These groups are required to file a CbC report, providing a detailed breakdown of the Multinational Group’s global revenue, profit before tax, income tax accrued, and other indicators of economic activities for each jurisdiction in which the MNE operates.

Purpose of CbCR:

The primary goal of Country by Country Reporting is to bridge the information gap between taxpayers and tax administrations. The report sheds light on where economic value is generated within the MNE Group, ensuring alignment with the allocation of profits and tax payments on a global scale.

Key Aspects of CbCR:

• Global Financial Overview: CbCR provides a comprehensive overview of the Multinational Group’s global revenue, profit, and income tax across various jurisdictions.
• Economic Activity Indicators: The report includes indicators of economic activities, offering insights into the operational landscape of the MNE Group.
• Enhanced Transparency: CbCR enhances transparency by providing tax administrations with detailed information about the MNE Group’s global operations.

CbCR Requirements in the UAE:

In the United Arab Emirates, CbCR requirements apply to UAE-headquartered MNE Groups with reporting fiscal years commencing on or after 1 January 2019.