The United Arab Emirates is a member of the OECD Inclusive Framework. The plan to introduce the Economic Substance Regulations came after the UAE landed on the EU’s tax blacklist. The implementation of the ESR Notification UAE helped the country improve its credibility and get off the blacklist. The ESR form UAE is a part of the ESR UAE guidelines which came into being in April 2019. These laws came into force in January of the same year and helped strengthen the nation’s position within the international market. Let us now take a closer look at ESR filing in UAE, and why it is essential.
What are the ESR filing guidelines?
The ESR UAE guidelines helped the country by improving the security and accountability of its taxation system. The Economic Substance Regulations introduced two new filing requirements, which are given below;
- Economic Substance Regulations or ESR Notification UAE
- Annual Substance Return
All entities within the UAE that engage in Relevant Activities must file these two reports on time to stay compliant. The annual notification form ascertains that the entity falls under the purview of the ESR UAE guidelines. The secondary substance return details how the entity has been working towards maintaining the required economic substance within the country. This Substance Report must be filed at least twelve months before the end of the upcoming financial year.
As you can see, ESR filing is an integral part of running a business in the UAE. Since failure to comply with the above-said regulations can result in fines and other legal hassles, companies need to consult experts to ensure compliance. KGRN Chartered Accountants will help you gain an insight into UAE’s Economic Substance guidelines. Furthermore, our team will rectify the errors in your internal controls and file your returns on time. Make sure your company stays on the right path by partnering with us, at KGRN’s ESR filing Services.
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For more Detailed information about ESR, Visit: Economic Substance Dubai Guidelines