Page 202 - ENVISAGE - Souvenir 2024 - Flip Book

Country-by-Country Reporting (“CbCR”)
CbCR was introduced in April 2019 and the first reporting became due in 2020. It was applicable to resident
entities which were part of MNEs with turnover equal to or excess of AED 3.15 billion. Subsequently the reporting
requirements were restricted to Ultimate Parent entities which were tax resident in the UAE. The CbCR compliance
requirements was limited due to the high turnover threshold.

Economic Substance Regulations (ESR)
ESR was introduced in 2019. These largely required entities with related parties transactions and relevant activities
to file notification and reporting post the financial year end. This provided an opportunity for practitioners for
advisory, notification filing and reporting. Subsequently there was the opportunity for appealing against the fines
levied and audit coordination. ESR has since been repealed from 2024 on the introduction of Corporate Tax and
adequate substance conditions in the CT legislation.

Anti Money Laundering (AML)
The new AML regulations required Designated Non-Financial Businesses and Professionals (DNFBPs) to register
on the GoAml system by March 2021. This brought new opportunities for practitioners to facilitate for GoAML
registration, develop systems and policies for AML Compliance and assistance in audit coordination. Interestingly
Audit and Accounting firms also came under the AML compliance and had to face audits for the AML compliance.

Corporate Tax (CT)
The big daddy of compliance was the introduction of Corporate Tax and consequential Transfer Pricing compliance
with effect from June 2023. This has led to the usual rush of practitioners with the established firms, industry
professionals turning into consultants, influx of professionals from India seeking greener pastures. The practice
opportunities centered around registration, impact assessment, advisory, implementation and now in some cases
return filing. CT will be the leading compliance frontrunner along with VAT for most professionals.

What next in the Compliance sphere?
The next big compliance expected is the introduction of personal income tax, which will provide the next big
opportunity for practitioners. When it will come is anybody’s guess but one thing is certain that the question will be
‘when will it come?’ and not ‘whether it will come?’ We have already seen the first steps in Oman!
Besides this, it is expected that the current compliances and the related audits are going to increase the importance
of compliance professionals and keep them busy for the years to come.
Any doubts that UAE is a compliance paradise!

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42 nd ANNUAL INTERNATIONAL
$5 Trillion
Economy CONFERENCE 2024-25
PR OFESSION, BHARA T & W OR LD EC ONOM Y
PROFESSION, BHARAT & WORLD ECONOMY