Cabinet Resolution Specifying the Requirement's of Real Economic Activities

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Cabinet Resolution No. (57) of 2020 Specifying the Requirement's of Real Economic Activities

The last update on this law was listed on 02 Sep 2024

Issued Date: 10 Aug 2020
Effective Date: 10 Aug 2020
Official Gazette Date: 16 Aug 2020
Official Gazette No: 684
Legislation State: Active
Legislation Amendments: 1

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INDEX (full):
Article (1) Definitions
Article (2) Resolution Objectives
Article (2) BIS Scope of Application
Article (3) Relevant Activity and Activity Generates a Main Income
Article (4) Regulatory Authorities
Article (5) National Authority for Evaluation
Article (6) Requirements of Fulfilment of Real Economic Activities
Article (7) Evaluation of Fulfilment of Requirements of Real Economic Activities
Article (8) Requirement of Information Provision
Article (9) Provision of Information by Regulatory Authority
Article (10) Provision of Information by National Authority for Evaluation
Article (11) Exchange of Information by Competent Authority
Article (12) Cooperation of Other Governmental Bodies
Article (13) Administrative Fine and Violation on Non-Submission of Notice
Article (14) Administrative Fine and Violation on Non-Submission of Real Economic Activities Report
Article (15) Administrative Fine and Violation on Submission of Inaccurate Information
Article (16) Period of Application of Administrative Fine to Violation
Article (17) Right to Appeal the Administrative Fine
Article (18) Date of Payment of Administrative Fine
Article (19) Power to Access the Work Headquarters and to Examine Business Documents
Article (20) Executive Resolutions
Article (21) Repeals
Article (22) Publication and Enforcement of Resolution

PREAMBLE (preview):
The Cabinet: Upon reviewing the Constitution; Federal Law No. (1) of 1972, concerning the Competencies of Ministries... Has Resolved: [full preamble text not captured in this extraction — page exceeded verbatim capture limits]

Article (1) Definitions (preview)
In application of the provisions of this Resolution, the following words and phrases shall have the meanings ascribed thereto, unless the context requires otherwise. Defined terms include: State; Banking Operations; Working Day; Document; Work Headquarters; Competent Authority; The Central Bank; Competent Foreign Authority; Relevant Person; Distribution and Service Provision Centre; Requirements of Real Economic Activities; Requirements of Real Economic Activities Report; Financial Free Zone; Financial Free Zone Authority; Fiscal Year; Relevant Foreign Person; Free Zone; Free Zone Authority; Operations of Investment Funds Management; Operations of the Headquarters; Licensee Exercising "High Risks" Intellectual Property Activity; Holding Company Operations; The Income Arising from The Intellectual Property Rights; Insurance Operations; Intellectual Property Operations; Intellectual Property Assets; Notice; Finance Leasing Operations; National Authority for Evaluation; Regulatory Authority; Relevant Activity; License; Licensee; Excluded Licensee; Beneficiary from Capital Ownership; Vessel; Consolidated Financial Statements; Group; Investment Fund; MNE Group; Joint Coalition; Income Arising from Relevant Activity; Shipping Operations; The Activity Generates a Main Income; Parent Company; Ultimate Parent Company; Third-Party Service Provider.
[Full definitions text not captured verbatim — see original source for exact wording of each definition.]

Article (2) Resolution Objectives (preview)
This Resolution aims at specifying the requirements the licensee should abide by and putting the sta... [truncated]

Article (2) BIS Scope of Application (preview)
The provisions of this Resolution shall apply to fiscal years commencing from 01/01/2019 up to and i... [truncated]

Article (3) Relevant Activity and Activity Generates a Main Income (preview)
1. For purposes of this Resolution, the relevant activity shall be one of the following activities: ... [truncated - list of relevant activities not fully captured]

Article (4) Regulatory Authorities (preview)
1. Subject to this Resolution, each of the following authorities shall be appointed as a Regulatory ... [truncated]

Article (5) National Authority for Evaluation (preview)
Subject to this Resolution, the Federal Tax Authority shall be appointed as the National Authority f... [truncated]

Article (6) Requirements of Fulfilment of Real Economic Activities (preview)
1. Subject to provisions stated in Clauses (5), (6) and (7) of this Article, save the excluded licen... [truncated]

Article (7) Evaluation of Fulfilment of Requirements of Real Economic Activities (preview)
1. The National Authority for Evaluation may decide that the licensee has not fulfilled the requirem... [truncated]

Article (8) Requirement of Information Provision (preview)
1. Each licensee and excluded licensee should send a notice to the Regulatory Authority each year cl... [truncated]

Article (9) Provision of Information by Regulatory Authority (preview)
1. When the Regulatory Authority receives the notice and the real economic activities report under t... [truncated]

Article (10) Provision of Information by National Authority for Evaluation (preview)
1. Subject to the right of the licensee to submit grievance according to provisions of Article (17) ... [truncated]

Article (11) Exchange of Information by Competent Authority (preview)
1. When the competent authority receives information from the National Authority for Evaluation info... [truncated]

Article (12) Cooperation of Other Governmental Bodies (preview)
1. All ministries and other governmental authorities, whether federal or local, should provide the R... [truncated]

Article (13) Administrative Fine and Violation on Non-Submission of Notice (preview)
1. An administrative fine of twenty thousand Dirham (AED 20.000) shall be applied for the licensee o... [truncated]

Article (14) Administrative Fine and Violation on Non-Submission of Real Economic Activities Report (preview)
1. An administrative fine of fifty thousand Dirham (AED 50.000) shall be applied to the licensee or ... [truncated]

Article (15) Administrative Fine and Violation on Submission of Inaccurate Information (preview)
1. An administrative fine of fifty thousand Dirham (AED 50.000) shall be applied to the licensee or ... [truncated]

Article (16) Period of Application of Administrative Fine to Violation (preview)
1. Without prejudice to provisions of Clause (2) of this Article, it is not permissible to apply any... [truncated]

Article (17) Right to Appeal the Administrative Fine (preview)
1. Any licensee or excluded licensee may appeal to the National Authority for Evaluation against its... [truncated]

Article (18) Date of Payment of Administrative Fine (preview)
Any administrative fine shall be paid subject to this Resolution before or on any of the following t... [truncated]

Article (19) Power to Access the Work Headquarters and to Examine Business Documents (preview)
1. Any employee authorized by the Regulatory Authority and National Authority for Evaluation may exa... [truncated]

Article (20) Executive Resolutions (preview)
The Minister of Finance shall issue the necessary resolutions to implement any of provisions of this... [truncated]

Article (21) Repeals (preview)
The Cabinet Resolution No. (31) of 2019, as amended, and Cabinet Resolution No. (58) of 2019 mention... [truncated]

Article (22) Publication and Enforcement of Resolution (preview)
This Resolution shall be published in the Official Gazette and shall come into force as of the date ... [truncated]

[Note: This law has 1 recorded Legislation Amendment which may affect current in-force text; the amendment content itself was not captured in this extraction.]