The reportable period for economic substance purposes
The UAE implemented the Economic Substance Dubai Regulations to add more transparency to the country’s taxation system. Article 4 of the Economic Substance Regulations helps define what a relevant activity is and what powers the regulatory authority has over them. The Economic Substance Regulations UAE reporting also has some standards regarding how the report must be filed. In this article, we will take a look at how the Economic Substance Regulations submission works, and what applicants need to keep in mind.
Who needs to submit an ESR Notification?
Any business that engages in the following relevant activities must file an Economic Substance Notification:
- Headquarter Businesses
- Shipping
- Holding Companies
- Intellectual Property
- Distribution and Service Centre
- Banking
- Insurance
- Investment fund management
- Lease-finance
The Notification may be submitted online through the ESR’s official website. Companies must ensure they submit the form in time as non-compliance may lead to penalties and the suspension of licenses.
What is the reportable period for economic substance purposes?
When it comes to Economic Substances, the Reportable term is the fiscal period for which you are filing the Economic Substance Notification. All licensees must provide the start and end dates of the applicable fiscal term on their notification form. If their fiscal year aligns with the ordinary calendar year, the start and end dates are as follows:
- Start date: 1st January 2020
- End date: 31st December 2020
In all cases, for filing of ESR Notifications, the Reportable Period is the financial period that precedes the period for which the Notification is due. If the company is moving towards dissolution or liquidation, then the Reportable Periods must be for the period before liquidation is completed. KGRN provides one of the best ESR fling services in Dubai and would be happy to help you with all your Economic Substance Regulations needs.
For more Detailed information about ESR, Visit: Economic Substance Dubai Guidelines
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