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Economic Substance Notification!
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ESR Notification!
The UAE introduced
Economic Substance Regulations effective as of 1 January 2019. Businesses are
now close the filing the requirements, in this article, find the guidelines on
how, where, and when to file and what is required to file.
The ESR compliance is composed of 2 steps:
1. The ESR
Notification filing.
2. The ESR Annual
Return/Report filing.
Businesses are
required to file all requirements to the Relevant Authority who issued the
license (Trade License). We highly recommend getting in touch with relevant
authority to seek guidance on filing the notification and return, in broad
terms the requirements are almost similar, however, there may be slight
variations.
Keeping above in mind,
licensees must monitor and follow the instructions issued by the respective
authorities. The authorities which are not ready yet, we suggest keeping in
constant touch with them.
In order to avoid non-compliance and possible penalties, it is important
to conduct an ESR assessment of UAE entities including all branches/subsidiaries,
whether they fall under ESR!
It is important for entities to conduct the ESR test to demonstrate
Substance in UAE. Failing which means non-compliance with ESR requirements!
Are you Ready!
Ask following
questions, if the answer is yes, you are all good:
a. Did you conduct an ESR Assessment?
b. Is your business fall under ESR?
c. If yes to point b, is your substance is in UAE?
d. Did you conduct ESR Tests to demonstrate
Substance in UAE?
How Consultants can
Help!
If you are still
confused with ESR requirements and need support to make sure you are 100% in
compliance, consider seeking the support of a consultant in the market. Bens
Chartered Accountants is helping business across UAE in:
a. ESR Assessment – covering legal structure &
revenue.
b. ESR Test satisfaction and recommendations.
c. Notification filing as per below dates, and
d. Annual Return filing for entities falls under
ESR
Below is the
table of ESR Notification filing requirements from various authorities for your
quick reference:
Authority
Emirates
Who
How
When
Comments
ADMG
Abu Dhabi
Only Licenses carrying Relevant Activities
DAFZ Portal
30-Jun-20
Portal is ready, contact the authority
Media FZ
Abu Dhabi
All Licenses irrespective of conducting Relevant
Activities or not
Not really, Bens Chartered Accountants would like to work closely with you to make the changes exactly as per the revised law to make sure 100% compliance and adherence to local laws and required. Feel free to drop a note or give us a call.
It is our duty to ensure compliance, completeness and provide insights to make quality decisions.
You relax and focus on your core business, we will take care of the details and make it happen for you!