CbCR UAE Requirements & Compliance Guide

CbCR UAE – Complete Compliance Guide for Businesses

CbCR UAE stands for Country-by-Country Reporting in the United Arab Emirates. It’s a legal requirement for large multinational groups to report their global financial and tax information.

The UAE introduced CbCR under Cabinet Resolution No. 44 of 2020, following the OECD Base Erosion and Profit Shifting (BEPS) Action 13 guidelines. The purpose is to increase transparency and give tax authorities a clear view of how profits are allocated among different countries.

Businesses in the UAE that meet the filing threshold must prepare and submit their CbCR to the Ministry of Finance.

Understanding CbCR in UAE

CbCR is required for multinational groups with consolidated revenues of AED 3.15 billion or more in the previous financial year. The report provides high-level information on:

• Revenue from related and unrelated parties.
• Profit or loss before income tax.
• Income tax paid and accrued.
• Stated capital and retained earnings.
• Number of employees.
• Tangible assets other than cash.

When CbCR Filing is Required

CbCR UAE applies if:

• The ultimate parent entity is a UAE tax resident with revenue above AED 3.15 billion.
• A foreign group has a UAE-based surrogate parent entity responsible for filing.
• The foreign ultimate parent has no CbCR filing requirement in its home country.

The report must be submitted within 12 months from the end of the reporting fiscal year.

CbCR Filing Process in UAE

Steps to prepare and submit CbCR in the UAE:

1. Notification Filing – Submit a CbCR notification to the Ministry of Finance before the end of the financial year.
2. Data Collection – Gather relevant financial and operational data from all entities in the group.
3. Report Preparation – Complete the OECD-prescribed CbCR template.
4. Submission – File the report through the Ministry of Finance’s CbCR portal.
5. Record Retention – Keep supporting documentation for at least 5 years.

Penalties for Non-Compliance

Failing to comply with CbCR UAE requirements can result in heavy penalties:

• AED 1,000,000 for failing to submit the report.
• AED 10,000–50,000 for failing to submit the notification or providing incorrect information.
• Additional penalties for late filing.

Common Challenges in CbCR UAE

Businesses face certain challenges, such as:

• Collecting accurate data from multiple jurisdictions.
• Understanding complex OECD reporting requirements.
• Coordinating with global finance teams.
• Ensuring consistency between CbCR and transfer pricing documentation.

Best Practices for CbCR Compliance

To ensure timely and accurate CbCR reporting:

• Maintain strong communication with all group entities.
• Automate data collection where possible.
• Review OECD guidelines regularly.
• Work with professional advisors to validate data.

What Can Help – Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing helps multinational groups meet CbCR UAE compliance requirements. We assist with data collection, report preparation, and timely filing to avoid penalties. After all, an ounce of prevention is worth a pound of cure.

For more information:

• Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
• Contact/WhatsApp: +971 50 276 2132