Economic Substance Notifications Due Dates Lists in the UAE

ESR Notification Deadline Lists in UAE

ESR notification deadline lists 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 3^rd May 2020 and was extended to 31^st May 2020.

For DIFC the initial declared due date was 12^th June 2020 and is extended to 30^th June 2020.

Since the Economic Substance Notification due dates declared by different authorities are not the same, it is important to 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:

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 the nature of administrative fines and other consequences such as:

• Financial Penalty ranging from AED 10,000 to AED 50,000 (in the 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 has 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
dhara@emiratesca.com                                 
+971565956836    

CA. Manu Palerichal, FCA, CMA
manu@emiratesca.com
+971502828727