UAE MoF issues new CbCR compliance requirements for MNE groups

Key considerations

The United Arab Emirates (UAE) Ministry of Finance (MoF) issued Cabinet Resolution No. 44 of 2020 on ‘Organizing Reports Submitted by Multinational Companies’, replacing the existing Cabinet Resolution No. 32 of 2019 on the implementation of Country-by-Country Reporting (CbCR). The new Cabinet Resolution sets out the CbCR compliance requirements for Multinational entity groups (MNE groups) headquartered and/or operating in the UAE.

On the 2nd and 3rd of November 2020, the UAE MoF conducted two awareness sessions on the applicability of the Cabinet Resolution No. 44 of 2020 on the MNE Groups headquartered in the UAE. They have also provided a practical live demo on the CbCR portal around the submission of the CbCR and CbCR notification.

Key highlights from the sessions
  • The Ultimate Parent Entity (UPE) of UAE Headquartered Groups (with consolidated group revenue of more than AED 3.15 billion in previous year) need to file the CbCR and the CbCR notification in the UAE for the years beginning on or after 1 January, 2019.
  • There are no longer compliance requirements for UAE Constituent Entities of non-UAE headquartered Groups, effective retrospectively for years beginning 1 January, 2019.
  • The UAE CbCR portal is expected to be active soon. For entities who already submitted notifications last year, their information will be migrated on to the new system and will receive login details over registered email.
  • Any entity that did not submit its notifications for the Financial Year ending 31 December, 2019 (FY19) will be required to enroll on the new Automatic Exchange of Information (AEOI) portal once active. 
  • In order to enroll on the new AEOI portal, the Authorized person will have to provide a signed letter from a director of the UPE in a template provided by the UAE MoF for this purpose. 
  • Constituent entities will be required to re-file their CbCR notification for FY19 as the previous notifications cannot be migrated to new system.The notification needs to be filed via the portal before submitting the FY19 CbCR.
  • The CbCR needs to be submitted in XML Schema 2.0, which is compliant with the OECD Format.
  • The deadline for the UAE MoF to exchange CbCR information for FY19 with other jurisdiction is 30 June, 2021.
Action points
  • The FY19 notification needs to be re-submitted on the new portal as soon as possible (once the portal is open).
  • The FY20 notification needs to submitted on or before 31 December, 2020.
  • The FY19 CbCR needs to be submitted on or before 31 December, 2020.
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