Under the old Economic Substance regime, there are two stages for a UAE entity to complete and comply with Economic Substance Notification and Reporting.
However, due to the release of Economic Substance Notification and Reporting there has been a complete overhaul of the legislation concerning the Economic Substance regime. The Federal Tax Authority (FTA) is now the government entity, overseeing compliance of Economic Substance via the Ministry of Finance (MOF).
The Ministry of Finance (MOF) has issued templates for Economic Substance Notification and Economic Report and deadlines for submission. The below states the new updated Economic Substance regime and action plan for your UAE entity.
Failure to comply with the new updated Economic Substance regime will have severe results such as: suspending or cancellation of your business license. Furthermore, penalties may be applied for non-compliance or incomplete reporting and the fines are ranging from AED 20,000 to AED 40,000.
With less than 8 weeks left, time is ticking. There is still time to get your company in order, complete the requirements, identify any gaps, review compliance processes, and correct any errors. Below we have drafted the next steps to ensure your business meets the requirements and standards on time.
As a leading registered corporate service provider with a robust corporate structuring, compliance, and tax department team of experts, we can guide you through the complete Economic Substance formalities to assist with: