Economic Substance Reporting: Is Your Deadline Fast Approaching?
Further to the introduction of the Economic Substance Regulations (ESR) in the United Arab Emirates (UAE), there are several deadlines approaching. ESR applies to all companies and entities based in the UAE, which includes mainland and free zones as well as local branches and branches of a foreign company. It is a mandatory requirement for all entities to submit the Economic Substance Notification irrespective of whether they conduct a “Relevant Activity” or not.
The UAE government has appointed the responsibility to regulate and administer the ESR to mainland and free zone licensing authorities known as the (Regulators). All Regulators are to set to issue the protocols and guidelines for each licensee entity to comply with ESR. Should a licensee entity or company carry out a “Relevant Activity” it is required to notify and submit the mandatory report to the relevant Regulator. Most Regulators have been instructed by the Ministry of Finance to set the deadline and request its licensee entity to formally lodge the notification by 30 June 2020.
Certain Regulators have set out the procedure and deadline for lodging the notification much earlier than 30 June 2020 e.g. Dubai Airport Free Zone Authority’s deadline is 31 May 2020. Furthermore, not all licensing authorities has released the notification deadline and processes e.g. Jebel Ali Free Zone Authority (JAFZA) and International Free Zone Authority (IFZA) and other Regulators are yet to release the formal submission process and format.