The UAE Economic Substance Regulations (ESR) Report filing deadline is fast approaching and the tentative deadline for UAE Licensees carrying out any relevant activity for the year end 2019, to file is December 31st 2020. In addition, the most recent UAE Economic Substance Regulations Updates have seen substantial modifications and now require re-assessment and re-submission of notification. All companies must therefore re-evaluate the applicability of ESR to their businesses, re-notify and prepare and file the ESR Return as a consequential action.
Administrative penalties of up to AED400, 000 have also been introduced along with suspension or non-renewal of trade licenses.
Contact our corporate team for assistance.
Following the ES substantial changes (Cabinet of Ministers Resolution No. 57 of 2020), UAE Licensees should re-evaluate the applicability of ESR to their businesses.
They should also resubmit their ES notifications for the year end 2019, with any changes required to the information already filed with the relevant regulatory authorities.
- After the First phase of submission (by 30th June 2020), all Licensees need to complete a reassessment in accordance with the new ES rules (10th August 2020) to ensure compliance.
- Licensees are required to re-submit their 2020 ESR notification. Further clarification on which Licensees this applies to is to be confirmed.
- For the Second phase of submission, Licensees that earn income from a “Relevant Activity” during the relevant financial period & that are not exempt from ESR are required to demonstrate economic substance in the UAE & file an ESR report within 12 months from the end of the relevant financial period.
A reassessment of your entity, regardless of its previous ESR assessment and classification, under new Economic Substance requirements must be conducted to determine whether the filing of the notification and report, which must be filed with MOF by 31st December 2020 for the year ending 31st December 2019, apply to it.
How can we assist you?
Wincore Advisory Group can assist you in this regulatory self-assessment to fulfil your compliance legal responsibilities by:
- Assistance with the reassessment of your entity in accordance with the new UAE ESR;
- Assistance with filing UAE ESR re-notification / annual notification/ reporting;
- To get a clear view of the new regulations and your entity’s categorisation;
- Reviewing internal corporate governance, Management information system and ESR criteria fulfilment;
- Implementing the most cost & time effective compliant (implementing contractual and delegation arrangements) strategy to help you pass the economic substance test;
- Provision of professional directorships, board support services, company secretarial/administrative services and registered office/meeting space.
Outsourcing this function to Wincore Advisory Group enables you to meet your obligations in the most efficient way and avoid to waste valuable time and energy in establishing an in-house process.
Be reminded that administrative penalties of up to AED400, 000 apply, so do not wait until it is too late. Contact our corporate team for assistance.