The purpose of the Economic Substance Regulation is to avert tax evasion, uphold fair taxation, and combat harmful tax practices. It ensures that businesses engage in relevant activities and sufficient substance and have an open presence in the jurisdiction. Therefore, licensees should seek the services of ESR consultants in UAE to establish substance for ESR purposes and to stay compliant to which noncompliance accrues hefty fines.
Licensees are required to submit an Economic Substance Notification before 30th June 2023, this encompasses every prescribed entity Licensee that:
Penalties ranging from AED 10,000 to AED 400,000 will be imposed upon licensees that fail to comply with the Economic Substance Regulation.
Below are the steps to submit your Economic Substance Notification:
The required information and documents:
Assess your entity’s current operations to ensure compliance with the economic substance requirements. Evaluate factors such as;
Read more: Ways of Filing ESR Notifications and Reports
Fill out the Economic Substance Notification form correctly, providing all the required information. Cross check any errors or omissions to ensure the form is complete and reflects the correct nature of your entity’s activities.
Submit the completed Economic Substance Notification form within the specified timeframe. Late submissions accrue penalties upon licensees.
Keep records of your Economic Substance Notification submission for reference and ensure compliance with subsequent requirements.
Read more: Things to be notified in Economic Substance Notification Form
Timely submission of the Economic Substance Notification is essential for licensees. Noncompliance with timely submission accrues penalties and fines upon licensees.
ESR consultants in UAE assist licensees to assess and determine the client`s business operations upon preparing to submit an ESR Notification. Furthermore, they assist to undertake a gap analysis to see whether the licensee has satisfied all ESR testing requirements and has all required documentation handy. Thus, licensees should seek the services of ESR consultants in UAE to establish substance for ESR purposes and to stay compliant, to which noncompliance accrues hefty fines.