- November 19, 2020
- Posted by: Dhivya Krishna
- Category: esr
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
- Holding Companies
- Intellectual Property
- Distribution and Service Centre
- Investment fund management
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?
The Reportable Period when it comes to Economic Substance purposes is the financial period for which you are filing the Economic Substance Notification. All licensees must mention the start and end of the concerned financial period of their notification form. In case their financial year corresponds with regular calendar year, then start and end dates would be as given below;
- 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 enquiries, call +971 45 570 204 / E-mail: firstname.lastname@example.org