Economic Substance Notifications Due Dates Lists in the UAE

economic substance notification due date list in the uae

Economic Substance Notifications Due Dates in UAE

(ESR Notification Due Dates UAE)

Economic Substance Notification due dates are released by most of the Regulatory Authorities in the UAE. However, the due dates released by different authorities are not consistent. In the case of some authorities, the declared due dates are already passed. For eg: DAFZA (Dubai Airport Free Zone); the initial deadline was on 3rd May 2020 and was extended to 31st May 2020. For DIFC the initial declared due date was 12th June 2020 and is extended to 30th June 2020.

Since the Economic Substance Notification due dates declared by different authorities are not the same, it is important summarize the available information in one place. The guidelines and or circulars issued by various Regulatory Authorities to their licensees on when to file the Economic Substance Notification (ESR Notification) and guidance on the same are summarized below.

Note: The list is only inclusive and as and when we get further information, we will update in the below chart:

Sr. No Authority Emirates Who is required to file? How to file? When to file? Form released
                                                                                             ABU DHABI
1 Abu Dhabi Mainland (Ministry of Economy) Abu Dhabi Only licensees

conducting relevant

activity

Economic Substance Notification By 30 June 2020 Yes
2 Abu Dhabi Global Market (ADGM) Abu Dhabi Only licensees

conducting relevant

activity

Economic Substance Notification Link ADGM 30th June 2020 Yes
                                                                                                 DUBAI
3 Dubai Silicon Oasis (DSO) Dubai All licensees, (Even if the relevant activity is not conducted) Email ESR notification

form to lic_section@dso.ae

By 31 May 2020 Yes
4 DAFZA Dubai All licensees, (Even if the relevant activity is not conducted) DAFZA portal By 31 May 2020 (extended from 3 May 2020) Yes
5 Dubai Aviation City Corporation Dubai All licensees, (Even if the relevant activity is not conducted) Email ESR Notification form to economic.substance@dacc.ae By 7 June 2020 Yes
6 Dubai South Dubai Email ESR Notification

form to economic.substance@

dacc.ae

Email ESR Notification form to economic.substance@dacc.ae By 7 June 2020 Yes
7 DIFC Dubai All licensees, (Even if the relevant activity is not conducted) DIFC portal By 30 June 2020 (extended from 12 June 2020) Yes
8 Dubai Internet

City

Dubai Only licensees

conducting relevant

activity

axsportal By 25 June 2020 Yes
9 Dubai Academic City Dubai Only licensees

conducting relevant

activity

axsportal  By 25 June 2020 Yes
10 Dubai Science Park Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
11 Dubai Design District Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
12 Dubai Knowledge Park Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
13 Dubai Production City Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
14 Dubai Outsource City Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
15 Dubai Media City Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
16 Dubai Studio City Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
17 Emirates Tower Dubai Only licensees conducting relevant activity axsportal By 25 June 2020 Yes
18 DMCC Dubai All licensees, (Even if relevant activity is not conducted) DMCC portal By 30 June 2020 Yes
19 Dubai Mainland (Ministry of Economy) Dubai Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
20 Jebel Ali Free Zone Authority Dubai Licensees conducting any of the Relevant Activity Jafza.lease-license@jafza.ae 30th June 2020 Yes
                                                                                               AJMAN
21 AJMAN FZ Ajman All licensees, (Even if the relevant activity is not conducted) email the ESR notification to info@afz.ae By 30 June 2020 Yes
22 Ajman Mainland (Ministry of Economy) Ajman Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
                                                                                            FUJAIRAH
23 Fujairah Mainland (Ministry of Economy) Fujairah Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
                                                                                      RAS AL KHAIMAH
24 RAK ICC RAK All licensees, (Even if relevant activity is not conducted) RAK ICC portal by a registered agent only (online form) By 30 June 2020 Yes
25 RAK EZ RAK All licensees, (Even if relevant activity is not conducted) RAK EZ portal (online form) By 30 June 2020 Yes
26 Ras Al Khaimah Mainland (Ministry of Economy) RAK Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
                                                                                          SHARJAH
27 Sharjah Mainland (Ministry of Economy) Sharjah Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
28 Hamriyah Free Zone Authority (HFZA) Sharjah All licensees, (Even if relevant activity is not conducted) Online Form By 30 June 2020 Yes
29 Sharjah Airport International Free Zone (SAIF) Sharjah All Licensee has to file the notification By 30 June 2020
30 SHAMS Sharjah All SHAMS Licensees (irrespective of conducting Relevant Activity or not) esrnotification@shams.ae  30th June 2020 Yes
                                                                             UMM AL QUWAIN
31 Umm al Quwain Free Zone Umm-Al-Quwain By 30 June 2020 Yes
32 Umm Al Quwain  Mainland (Ministry of Economy) Umm-Al-Quwain Only licensees conducting relevant activity Economic Substance Notification By 30 June 2020 Yes
                                                                              ALL
33 Central Bank of UAE All licensees conducting relevant activity By 30 June 2020 Yes


Step 1: ESR Assessment: Check whether you are falling under the Relevant Activity or not?
How should businesses in UAE act immediately to comply with Economic Substance Regulations in UAE (ESR UAE)? 

Step 2: ESR Notification: If you are falling under the Relevant Activity, you have to file the notification before the due date. (some Regulatory Authorities are recommending all the licensees to submit the Notification – pls refer above chart)

Step3: Economic Substance Test: Check whether you have complied with the Regulation for the relevant Financial Year and ensure that you met the requirements.

Step 4: ESR Return: Submit the Economic Substance Return to the Relevant Authorities within the due date (within 12 months from the end of the Financial Year)

The Relevant Activities under Economic Substance Regulations in UAE (ESR UAE) are as below:

  • Banking Business
  • Insurance Business
  • Investment Fund Management Business
  • Lease-Finance Business
  • Intellectual Property Business
  • Holding Company
  • Headquartered business
  • Shipping Business
  • Distribution & Service Centre Business

Failure to comply with the Economic Substance Regulations in UAE (ESR UAE) can let you face Penal Consequences in nature of administrative fines and other consequences such as:

  • Financial Penalty ranging from AED 10,000 to AED 50,000 (in first year of non-compliance)
  • Suspension of License
  • Revocation of License
  • Non-Renewal of License

How can Emirates Chartered Accountants Group extend our support?

  1. Assessment on the applicability of Economic Substance Regulation for your business
  2. Filing the Economic Substance Notification
  3. Filing of Annual Economic Substance Return

Emirates Chartered Accountants Group have a specialized team on the subject to support and guide you on the Compliance with Economic Substance Regulations UAE (ESR UAE) with the following roadmap:

Phase I:   To study your Business Activities in detail and assess the applicability of Economic Substance Regulations UAE (ESR UAE) on your activities. Also, to provide support and guidance on filing Economic Substance Notification (ESR Notification).

Phase II:  To provide the guidance and support for compliance with the provisions of the Regulation, if your activity is falling under the regulation. To conduct Impact Study and Gap Analysis in order to assess whether the Business meets the Compliance test and to provide the recommendations.

Phase III: Economic Substance Reporting/Declaration with Authority on or before the Due Date.

 


For any enquiry and support on Economic Substance Regulation you can reach out:

CA Dhara Yagnik, M.Com, ACA                                            CA. Manu Palerichal, FCA, CMA

dhara@emiratesca.com                                                        manu@emiratesca.com

+971565956836                                                                       +971502828727

 

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