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Economic Substance Regulation notification DEADLINE 2024

ESR NOTIFICATION DEADLINE 2024

For Financial Year ended 31 March 2024 (for the FY from April 01, 2023 to March 31, 2024), ESR Notification deadline is 30 September 2024 and for the Financial Year ended 30 September 2023 (For the FY from October 01, 2022 to September 30, 2023), ESR Report submission deadline is 30 September 2024.

 

Failure to comply will incur penalties between AED 20,000 to AED 50,000 and other issues. Read on to know more…

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Seamless ESR Services in UAE

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    Is ESR applicable to your business?

    With reference to the guidelines, issued by MOF, the regulations are applicable to all the UAE entities carrying out relevant activities, please keep in view that there are some material changes in the revised

    Economic Substance Regulations, under which any previous classification needs to be reconsidered.

    What are the Relevant Activities?

    Banking Business
    Business Lease - Finance Business
    Holding Company Business
    Insurance Business
    Headquarters Business
    Intellectual property Business (IP)
    Investment Fund management
    Shipping Business
    Distribution & Service Centre Business

    Once a UAE company has been identified as undertaking relevant activities, the ESR requires the
    company to satisfy the economic substance test which comprises three elements:

    1). It is directed and managed in the UAE in relation to that activity
    2). It conducts Core Income-Generating Activities (CIGA) in the UAE
    3). It meets the adequate requirements with regard to the level of relevant activity carried on in the UAE.

    If your financial year is ended on 31 March 2024, the deadline for submission of the ESR Notification and Report?

    a) ESR Notification shall be submitted before 30 September 2024 (in 6 months) and
    b) ESR Report should be submitted before 31 March 2025 (in 12 months) in the Ministry of Finance Portal.

    What are the penalties for not complying with ESR?

    Failure to comply with the ESR regulations can lead to significant penalties, ranging from AED 20,000 to AED 50,000, and other administrative sanctions, such as the suspension, revocation, or non-renewal of the entity’s trade license or permit.

    – Failure to file ESR notification by September 30, 2024 – Penalty of AED 20,000.
    – Failure to file ESR Report by March 31, 2025 – Penalty of AED 50,000

    If you have any questions or need further assistance, please do not hesitate to contact us.:

    Call @ +971 4 2699 329

    [email protected]

    or just fill the above contact form

     

    How can Spectrum help you in complying with ESR?

    Assess and file ESR Notification

    • We will study your business activities in detail and assess the applicability of the Economic Substance Regulation to your business.

     

    Changes in business to comply with ESR

    • We provide guidance and support to ensure compliance with the ESR provisions. This includes conducting an “Impact Study and Gap Analysis” to assess whether your business meets the compliance test and offering recommendations for necessary changes.

     

    Submit ESR Report

    • We will submit the ESR Report to the Regulatory Authority before the due date, ensuring your business meets all regulatory requirements.
    We are here to support you through the entire process to ensure you remain compliant and avoid any penalties.
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