Country by Country Reporting (CbCR)
How and why CbCR was adopted in UAE?
CbCR is a part of Action 13 of the Base Erosion and Profit Shifting (BEPS) project that is led by the G20 and the Organisation for Economic Co-operation and Development (OECD).
The BEPS initiative is aimed at preventing tax planning that exploits gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity. In other words, the focus of BEPS regulations is to ensure alignment of profit allocation (remuneration) with value creation (functions performed, risks assumed and assets owned) for each entity across the value chain.
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