ESR Compliances- A Must Do:
Compliance with Economic Substance Regulations (ESR) which were implemented in UAE for financial years commencing 1st January 2019 and afterwards is now a reality knocking at our doors and ESR compliances are a ‘Must Do’ for Businesses in UAE, amidst the challenging times of COVID19.
Latest Updates on ESR Compliance Time-Lines in UAE
Ministry of Finance in UAE has given a time-line to the various Regulating Authorities for Free Zone and Mainland Companies in UAE, to ensure the ESR Notifications by all the Companies whose financial year ends on 31st December 2019 should be done by no later than 30th June 2020 and the ESR Return submission be done by no later than 31st December 2020.
Accordingly, the various Regulating Authorities in UAE have started issuing Circulars to the Companies that they are regulating, with a time-line for submission of ESR Notification as follows:
- Dubai Airport Free Zone Authority (DAFZA) has set the time-line for ESR Notification as no later than 3rd May 2020 and has released the ESR Notification Form for DAFZA Companies.
- RAK International Corporate Centre (RAK ICC) has set the time-line for ESR Notification as 30th June 2020 and has released the ESR Notification Form for RAK ICC Companies.
- Ajman Free Zone (AFZ) has set the time-line for ESR Notification as 30th June 2020 and has released the ESR Notification Form for Ajman Free Zone Companies.
- Dubai Multi Commodities Centre (DMCC) has set the time-line for ESR Notification as 30th June 2020, but has not released the ESR Notification For DMCC Companies yet.
- Dubai Silicon Oasis (DSO) had originally announced the time-line for ESR Notification as 20th March 2020 and had released the ESR Notification Form for DSO Companies, but on account of COVID19 situation, this time-line has been extended, with a new time-line, yet to be announced.
- Dubai International Financial Centre (DIFC) had originally announced the time-line for ESR Notification as 31st March 2020, but had not released the ESR Notification Form for DIFC Companies. However, on account of COVID19 situation, this time-line has been extended, with a new time-line, yet to be announced.
- Abu Dhabi Global Markets (ADGM) had originally announced the time-line for ESR Notification as 31st March 2020, but had not released the ESR Notification Form for ADGM Companies. However, on account of COVID19 situation, this time-line has been extended, with a new time-line, yet to be announced.
- Ministry of Economy (MOE) in UAE which regulatesall the Mainland Companies i.e. all companies which have their Trade Licenses issued by the Department of Economic Development (DED) in each of the seven Emirates in UAE has not yet issued any time-line for ESR Notification, ESR Notification Forms and guidance for ESR Implementation for Mainland (UAE) companies. However, we have received a feedback from the Ministry of Economy that the Relevant Department in Ministry of Economy is in the final stages to publish all the requirements relating to ESR on the MOE’s Official Website within the coming few days.
Given that the time-lines for doing ESR Compliances for all Businesses in UAE is just knocking at the door-steps, it would be prudent for the Businesses in UAE to start getting ESR Impact Assessment, ESR Gap Analysis, ESR Implementation and ESR Compliances (Compilation and Submission of ESR Notification Forms and ESR Returns to the relevant Regulating Authorities) for their respective Companies done immediately, without any further delays, to avoid being levied with significant fines and penalties and other serious consequences, in the event of non compliances with ESR requirements.
Our Highly Experienced Tax Advisory Team, which has carried out numerous ESR Impact Assessment, ESR Gap Analysis, ESR Implementation Assistance and ESR Compliance Assistance Engagements for our Clients across all industry sectors, can assist your Businesses for ensuring that you ‘Get Everything Absolutely Right in relation to ESR for your respective Companies’.
Our Tax Advisory Team comprising of qualified CA, CS and CFA Professionals comes with a wide variety of professional experience in this area of professional services, gained in UAE and across the globe working with Big 4 Accounting & Tax Consulting Firms and other Top 10 Global Accounting & Tax Consulting Firms, and are committed to ensure the quality of our professional services is of the same or better standard than that of any other Top Global Accounting & Tax Consulting Firms.
We understand that these are challenging times for all businesses across UAE on account of COVID 19 and therefore our Team has pledged that without any compromise in quality of our work and deliverables to any Client, we will support all Businesses in UAE with our professional services of top notch standards in relation to ESR and other Tax & Compliance Matters, at only a small fraction of the Professional Fee for such Engagements charged by the other Top Global Accounting & Tax Consulting Firms.
MaxGrowth Consulting is a boutique Multi-National Tax Consulting, Corporate Finance Advisory, Business Restructuring and Strategy Consulting Company established in 2009, with 15 Offices, spread across the globe, covering 4 Continents. In UAE, MaxGrowth Consulting is providing its Professional Consulting Services to more than 250 Clients , in all the seven Emirates , ranging from some of the largest UAE based Conglomerates, Large Multi National Companies, Listed Companies, Government Entities, Family Owned Businesses, Family Offices and Small & Medium Enterprises (SME’s).
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