Compliance Services
- Reporting on each country separately
- Economic Substance Reporting
- Ultimate Beneficial Owner
- Anti Money Laundering Compliance
- Compliance Officer Outsourcing
- Tax Compliance Services
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Country by Country Reporting
CbC reporting is part of Action 13 of the Organization for Economic Co-operation and Development (OECD) and the Group of Twenty (G20) industrialised nations’ Base Erosion and Profit Shifting (BEPS) effort.
Large Multinational Groups of Entities (MNEs) are required to file a CbC Report under BEPS Action 13.
For each country in which the MNE operates, this should include a breakdown of worldwide revenue, profit before tax, income tax accrued, and certain other indicators of economic operations.
The goal of CbC Reporting is to close any information gap between taxpayers and tax authorities in terms of where economic value is generated within an MNE Group and whether it corresponds to where earnings are allocated and taxes are paid on a worldwide scale.
UAE-headquartered CbC Reporting legislation in the UAE should be followed by groups of firms that meet the following criteria:
- MNE Groups (i.e., Groups which consist of two or more enterprises that are residents for tax purposes in different jurisdictions.); and
- Have a total consolidated revenue that is equal to or more than AED 3,150,000,000 for the financial year preceding the reporting year concerned.
The MNE Group’s Ultimate Parent Entity, which is subject to the CbC Reporting Legislation, is a UAE tax resident entity. An entity should be deemed a tax resident in the UAE if it is formed or created under UAE rules or has its seat of effective administration there, according to existing UAE laws and international tax treaties..
For financial years beginning on or after January 1st, 2019, CbC reporting obligations will apply. The CbC report must be submitted within 12 months of the conclusion of the MNE Group’s reporting year (e.g., With respect to the financial year commencing on January 1st, 2019 and ending by December 31st 2019, the CbC Report should be filed no later than December 31, 2020).
A CbCR notification is a form containing (i) confirmation that the notifying entity is the Ultimate Parent Entity of the MNE Group, resident in the UAE, and the UAE CbCR requirements are applicable to such MNE Group; and (ii) identification of such entity including trade license number, address, business activity and year end. A report including quantitative and qualitative information about the MNE Group. Information such as revenues, profits, employees count, business description, etc. should be reported.
Reporting on Economic Substance:
The UAE released Economic Substance Regulations in response to an examination of the UAE’s tax system by the European Union Code of Conduct Group on Business Taxation, as part of the UAE’s commitment as a member of the OECD Inclusive Framework (Cabinet of Ministers Resolution No. 31 of 2019)
The Regulations require UAE onshore and free zone firms, as well as certain other business types, to maintain and demonstrate an adequate “economic presence” in the UAE in relation to the activities they engage in (“Economic Substance Test”).
- Banking Business
- Insurance Business
- Investment Fund management Business
- Lease – Finance Business
- Headquarters Business
- Shipping Business
- Holding Company Business
- Intellectual property Business (“IP”)
- Distribution and Service Centre Business
Ultimate Beneficial Owner:
The UAE Federal Law 20 of 2018 on Anti-Money Laundering and Counter-Terrorism Financing (the “AML Law”), as well as Cabinet Decision 10 of 2019, require business licencing bodies in the UAE to identify the final person beneficial Owner(s) of enterprises licenced by them.
An Ultimate Beneficial Owner (the “UBO”) is a person who owns or controls 25% or more of a Business Partner, either directly as a shareholder or indirectly through ownership of corporations, other entities, or structures that control the Business Partner.
As part of the registration and licencing process, all new business partners registering as a FZLLC or a Branch Office of a foreign (non-UAE) company will be required to complete and submit the UBO Form.
At the next licence renewal, all existing business partners registered as a FZLLC or a Branch Office of a foreign (non-UAE) Company will be required to complete and submit the UBO Form as part of their licence renewal.
The Authority maintains the right to request additional paperwork and other verifiable information from any Business Partner to support disclosures made in the UBO statement. A UBO declaration is not required for some Business Partners.
RERA Compliance:
RERA (Real Estate Regulatory Organization), a Dubai government agency that creates rules and regulations for various real estate businesses, requires all RERA-registered developers to open an escrow account and undertake an independent audit to evaluate the project’s completion status and progress. RERA also necessitates an annual report.
A compliance audit is examining and verifying a developer’s actions to ensure that they are following all applicable real estate laws and regulations.
Employees at AlFahad Tax Consultancies are known for their competence and expertise in discovering, analysing, and devising strategies for difficult real estate challenges and providing appropriate solutions.
Anti-Money Laundering Compliance:
Dubai, one of the most important financial centres in the UAE and the Middle East, is home to a diverse spectrum of international commercial interests in its special economic zone, the Dubai International Financial Centre (DIFC). Since its creation in 2004, the DIFC has developed to become one of the top ten financial centres in the world, housing hundreds of banking and financial organisations. Dubai’s prominence also makes it a desirable target for financial criminals looking to launder money or fund terrorist activities by taking advantage of the city-wealth state’s concentration.
To deal with the financial dangers it poses, the DIFC has its own regulatory structure, and it is basically a separate entity from the rest of the UAE. This system is overseen by the Dubai Financial Services Authority (DFSA), which is responsible for preventing money laundering and other financial crimes in the special economic zone. As a result, financial firms doing business in Dubai must be aware of the risks of anti-money laundering and counter-terrorist financing, as well as how to comply with DFSA laws.
Compliance Officer Outsourcing:
Outsourcing functions that are not core business activities has been one of the most significant business trends in the recent decade. The two most common reasons for outsourcing are to save money and gain knowledge.
AlFahad Tax Consultancies will provide you with consultants who have the necessary abilities and expertise to be a successful and knowledgeable Compliance Officer. Whether it’s a specialised industry background or a specific Compliance field, the consultant we’ll provide is the most fit for your Firm’s company and requirements.
The consultants at AlFahad Tax Consultancies are trained on a regular basis to ensure that they have the most up-to-date knowledge and insight into industry best practises, which they can bring to your firm.
Tax Compliance Services:
Since the UAE government stated that VAT will be applied in the UAE beginning in 2018, there has been a lot of speculation. Several businesses are experiencing difficulties when it comes to filing or registering for VAT. As a result, the VAT filing and registration process must be completed correctly and in accordance with FTA guidelines..
Types of Registration
Any business that surpasses the statutory or voluntary registration thresholds may be required to register for VAT or may be able to do so.
There are two kinds of registrations available. Registration is required. Registration is done voluntarily. If a company’s taxable supply and imports surpass the statutory registration threshold of AED 375,000, it must register for VAT. Furthermore, if the total value of a firm’s taxable supply and imports (or taxable expenses) exceeds the voluntary registration threshold of AED 187,500, the company might choose to register for VAT voluntarily.
Tax Consultancies AlFahad A team of advisors and practitioners from Chartered Accountants will assist the firm in claiming and filing the correct VAT. Following the implementation and enforcement of Value Added Tax (VAT), all businesses that fall below the threshold must register for VAT, and failure to do so may result in company fines.
AlFahad Tax Consultancies offers Tax Compliance services that will assist your business in preventing tax-related fraud, saving money, and resolving any compliance-related issues.
To file for VAT in the UAE, businesses must present all required paperwork, and we will assist them in gathering these documents. The following documents are necessary for VAT registration in the United Arab Emirates. We double-check that the company has all of the appropriate papers before going on to the next step.
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