UAE UPDATES
Base Erosion and Profit Shifting ('BEPS')
Background
On 16th May 2018, Organization of Economic
Development ('OECD'), announced that the UAE has become a
member of the Base Erosion Profit Shifting inclusive framework
('BEPS IF'). Being a BEPS member, UAE was required to
commit to the BEPS minimum standards i.e. UAE would be required to
commit to all the Actions listed in the BEPS IF.
Recent Developments
UAE has published Cabinet Resolution No. 32 of 2019, thereby
introducing country by country reporting ("CbC
Reporting") obligations that multinationals will be required
to comply with starting 2020.
Considering the above developments, and in line with OECD's
recommendations, (Action 13 – Guidance on the implementation
of Transfer pricing), Multinational groups whose gross consolidated
turnover exceeds threshold of AED 3.15 billion (US$857 million)
will be required to file a CbC report.
