Sat 14-11-2020 13:17 PM
ABU DHABI, 14th November, 2020 (WAM) -- In line with its commitment to adopt the best digital solutions in government work, the Ministry of Finance, MoF, announced the launch of the ‘MNEs Notification and Reporting System’, in accordance with UAE’s Cabinet Resolution no. 44 of 2020 to organise the reports submitted by the multinational's companies, MNEs.
Younis Haji Al Khoori, Undersecretary of MoF, noted the importance of launching this system, as it is a core element of the Base Erosion and Profit Shifting, BEPS,’s Action 13. The system enables big Multinational Groups to submit their Country-by-Country Reporting, CbCR, separately and in an easier way, while providing a breakdown of the Multinational Group's global revenue, profit, accrued income tax and other financial indices for each country in which the MNE group operates.
Al Khoori said: "Exchanging information between taxpayers and tax authorities with regards to where MNEs’ economic value is generated, where their profits are transferred, and where those profits’ taxes are paid globally, required greater efforts so as to lessen the gap in the lack of information exchanged. Therefore, CbCR reporting became a prerequisite to strengthen the exchange of information and provide tax authorities with an overview of MNEs’ economic activities and their global financial results."
MoF began receiving notifications through the system since Thursday, November 05, 2020; and MNEs must register in the ‘MNEs Notification and Reporting System’ before December 31, 2020.
The UAE joined BEPS’s comprehensive framework in 2018, which is led by the Organization for Economic Co-operation and Development, OECD, and the G20. BEPS aims to prevent tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.