THE CHALLENGE

As part of the UAE’s commitment as a member of the OECD Inclusive Framework and in response to assessing the UAE’s tax framework by the European Union, the UAE introduced the Economic Substance Regulations. The Regulations require UAE businesses (including onshore, offshore, free zone companies, and other UAE business forms) that carry out any of the “Relevant Activities” to maintain adequate “economic presence” in the UAE relative to the activities they undertake.

THE SOLUTION

cBrain's web-based solution, F2, in combination with online self-services, has been designed to allow:

• Companies to submit notifications via online self-service. Regulatory

  Authorities and the Federal Tax Authority can access and review these

  submissions via F2 (via their own Costomized dashboard).

• Companies to submit Economic Substance Reports via self-service. Regulatory

  Authorities and the Federal Tax Authority can access and review these submissions, while the Federal Tax Authority carries out audits and the Ministry of Finance receives the respective information.

• The Ministry of Finance to be able to exchange information with the OECD countries via CTS – a Common Transmission System, which all OECD members use to share information. (The Ministry of Finance exchanges information with the OECD countries via CTS – a Common Transmission System, a platform for exchanging the data.)

• The Federal Tax Authority to give issue and administrate penalties and appeals to non-compliant companies via F2 dashboard. Federal Tax Authority business users have access to a decision-making support tool, called risk assessment engine.

• The Federal Tax Authority to be supported in their risk assessment by a Risk Assessment Engine, generating a Risk Scorecard and Risk Monitoring via F2.

THE BENEFITS

The fully digital ESR solution:

• Enable the UAE government (including the Ministry of Finance, Federal Tax Authority, and 36 regulatory authorities) to provide a key tax compliance service in a fully digital way, improving high speed and quality of reviewing cases and interactions with all relevant parties.

• Allow to manage all information from one secure and robust system, with all basic administrative tasks being automated (emails reminders, deadlines calculation), enabling gains of efficiency and productivity, providing a single auditable record of all activities.

• Contribute to the SDG goals by offering F2 as software and digital solution for tax avoidance.