ESR filing deadline for Notifications will be extended to 31st December 2020, because the Ministry of Finance Portal (MOF) was activated just recently (first week of December 2020). So, now the new online Portal is used for filing Purposes, which was launched by the UAE Ministry of Finance. The filing of the ESR notifications, economic substance reports & the submission of any other related documents must be done through this dedicated portal. The information on the portal, with the procedures & rules for use of the portal, is available on the MoF’s website. The Ministry of Finance in UAE has announced the ESR Filing Requirements & Deadlines together with the relevant templates for ESR notification & ESR report. The significant highlights & takeaways from the notice published by the MoF are:
For ESR Notifications
Economic Substance Regulations notifications are due to be filed in 6 months of financial year-end relevant to financial years starting from 1st January 2019 onwards.
The re-submission of notification would be needed for licensees who are doing a Relevant Activity or are doing a Relevant Activity & are applying for an exemption during the appropriate financial year.
The due date for filing the ESR notification would be 31st December 2020.
As well as the licensees who have recently presented the ESR notification to their Regulatory Authorities, the previously mentioned due date will likewise be applicable for ESR notification once the MOF portal goes live. So, now the portal was activated they can head on towards submission of ESR notification.
Exempted licensees and/ or Licensees who failed to submit or resubmit the ESR notifications within the due date will be subject to a penalty of AED 20,000.
For ESR Report
Economic Substance Regulations Reports are due to be filed within a year of the financial year-end for periods starting from 1st January 2019.
As well, the deadline for the ESR report submission is 31st Dec 2020 for the financial year ending 31st December 2019. This deadline will also apply to short financial years were the 12 months deadline failed before the MoF portal is active.
Failure to present the ESR Report before the due date referenced above will be subject to a penalty of AED 50,000.
Final Thoughts
By the extended timeline, licensees who earlier did not file the ESR notification inside the deadline declared by the Regulatory Authority earlier this year will now have the chance to meet their ESR duties. Moreover, now the portal is active, all licensees should perform an ESR assessment on their business activities in light of the new ESR law & submit the required notification and/ or report due by the end of this year.
If you need any help in meeting the ESR compliance for your business. You can contact ARC Associates, the best Economic Substance Regulation service in Dubai. As the leading Economic Substance Consultants in Dubai, Sharjah, Abu Dhabi, & all over the UAE we are well equipped in assisting your firm to prepare for the resulting ESR compliance requirements accordingly. We can help you to define to which extent ESR can apply to your business, deliver proficient guidance & strong support on ESR Notification Filing procedures to help you comply with all ESR requirements & to avoid any sort of penalties too. So, if you want any help for Economic Substance Regulations services in UAE, do reach out to us today, we will be happy to help you!