ESR Deadlines

ESR Filing Deadline

The ESR regulations, which are applicable to some company operations conducted in the UAE, were implemented by the government of that country. These regulations aim to ensure that companies operating in the United Arab Emirates are legitimate participants in the regional economy.

The ESR regulations, which are applicable to some company operations conducted in the UAE, were implemented by the government of that country. These regulations aim to ensure that companies operating in the United Arab Emirates are legitimate participants in the regional economy.

ESR Notification

What is the purpose of the Notification?

The Notification serves to give the Regulatory Authorities some preliminary information about Licensees and their operations in the United Arab Emirates during the applicable Reportable Period. To file an Economic Substance Report for the same time (if needed), the information included in the Notification is a precondition.

Who needs to submit a Notification?

If you are a partnership (limited liability partnership, general partnership, etc.) or corporate entity (limited liability company, public joint stock company, private joint stock company, etc.) and you engage in any of the following Relevant Activities in the UAE during the relevant Financial Year, you must file a notification.

• Financial Institutions
• Companies that Provide Insurance
• Enterprises that Manage Investment Funds
• Businesses That Finance Leases
• Headquarter Enterprises
• Shipping Companies
• Businesses of Holding Companies
• Companies with Intellectual Property
• Businesses in Distribution and Service Centers

A Licensee is a business located in the United Arab Emirates that engages in one or more of the aforementioned activities within the relevant Financial Year. An entity is referred to as an Exempted Licensee when it engages in one or more of the aforementioned activities but is exempt from specific obligations under the Economic Substance Regulations.

 Both a Licensee and an Exempted Licensee must send a Notification, just to be clear.

ESR Notification Deadline

 The Notification must be finished within six months of the Licensee's fiscal year ending.

Penalties for Failure to provide a Notification

An administrative penalty of dirhams twenty thousand (AED 20,000) will be imposed on the Licensee or Exempted Licensee who failed to submit the Notification by the deadline.

As previously mentioned, a licensee or exemptioned licensee faces a penalty of dirhams fifty thousand (AED 50,000) if they give false information to the National Assessing Authority or the Regulatory Authority and are aware of the inaccuracy at the time the information is provided but choose not to notify the authorities.

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