The Economic Substance Regulation has two annual filing obligations for licensees within the scope of ESR.
ESR notification must be filed if the business is undertaking a Relevant Activity. This applies even where the business claims exemption from ESR or does not earn any income from the Relevant Activity.
ESR report is applicable to businesses that perform Relevant Activities, earn income from these activities and do not qualify for any exemption under ESR.
Failure to submit by the required deadlines attracts penalties ranging from AED 20,000 to AED 400,000.
Below is the summary of the upcoming deadlines for reference:
Recently, we have experienced an increase in review of the applications submitted by the licensees and licensing authorities and FTA call for additional documents in relation to the ESR tests.
Please contact Mufaddal Safdari, Amrita Chandwani or your existing Tax team contact, if you need any support for ESR.
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