ESR Notification for the entities having financial year ending 30th June 2022 are to be filed by 31st December 2022.
On the other hand, ESR Report Filing for the entities having financial year ending 31st December 2021 are to be filed by 31st December 2022.
The Cabinet Decision No. 57 of 2020 concerning the Economic Substance Requirements (ESR) Filing should be mandates for the entities in UAE doing that Relevant activity. They must submit an ESR Filing on the Ministry of Finance – ESR Portal for the respective financial year.
Relevant Activities under ESR
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
ESR due dates for the Companies
Financial Year ending on Notification Due Date Report Due Date
31st Dec 2021 30th Jun 2022 31st Dec 2022
31st Mar 2022 30th Sept 2022 31st Mar 2023
30th Jun 2022 31st Dec 2022 30th Jun 2023
Penalties for ESR non-compliance
Non-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