ESR Report and Notificati on - YUGA Accounting

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 BusinessesESR Notification & Report - YUGA Accounting

• 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

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