Are you ready for ESR Notification filings by Sep 30 ?

All the Entities in UAE doing that Relevant activity having financial year ending 31^st March must submit ESR Notification to be filed by 30^th Sep 2022.

They must submit an ESR Notification on the Ministry of Finance – ESR Portal within six (6) months from the end of the respective financial year.

The Economic Substance Regulations (ESR) apply to companies and other business entities registered in the UAE, including in the Free Zones, that carry out any of the following Relevant Activities during the financial year:

• Banking Businesses

• Insurance Businesses

• Investment Fund Management Businesses

• Lease-Finance Businesses

• Headquarters Businesses

• Shipping Businesses

• Holding Company Businesses

• Intellectual Property Businesses

• Distribution and Service Center Businesses (Purchasing from Foreign connected persons/ Providing services to Foreign connected persons)

The Company need to check if it carries out one or more of the relevant activities during the financial year, if yes the Company needs to do the following ESR Compliance:

1. ESR Notification within 6 months from the end of the financial year

2. Conduct an ESR test and submit the report to the concerned authority within 12months from the end of the financial year

Following are the due dates for the Company having financial year as below:

Financial Year ending on                    Notification Due Date                Return Due Date

31th Mar 2022                                                           30th Sept 2022                                      31st Mar 2023

30th Jun 2022                                                             31th Dec 2022                                     30th Jun 2023

31st Dec 2022                                                             30th Jun 2023                                      31st Dec 2024

Please note penalties for non-compliance would attract:

On-Compliance                                                       Amended Penalty Amount

Failure to submit a Notification                                                                    AED 20,000

Failure to submit an Economic Substance Report                                    AED 50,000

Providing inaccurate information                                                                 AED 50,000

Failure to pass ES Test for first year                                                            AED 50,000

Failure to pass ES Test for the consecutive year                                       AED 400,000

How can YUGA help you?

We are happy to assist you with our expertise on the ESR Compliance by carrying out the High level assessment and support in filing the ESR Notification and Report within the due date.

We assure to provide best of our services for your ESR Compliance.

FOR MORE INFORMATION, CONTACT US :

Phone : +971 52 1952 532 / +971 4 240 1110

Mail-Id : info@yugaaccounting.com

Website : www.yugaaccounting.com