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Economic Substance Regulation Services

Under the Legislation, every Licensee conducting a Relevant Activity must file and submit an ESR notification and report.

If your business receives income from a Relevant Activity and requires expert support, we can help to minimise risks and costs.

Base Erosion and Profit Shifting (BEPS) is the use of aggressive tax planning strategies by companies to artificially shift profits to low or no-tax jurisdictions. BEPS laws and regulations proposed by the OECD are now enacted into the United Arab Emirates Legislation.

The United Arab Emirates Cabinet of Ministers has issued the Economic Substance Regulations supplemented by guidelines issued on September 11, 2019, which applies to all entities carrying on a Relevant Activity in the UAE, including entities established in Free Zones and Financial Free Zones.

Such entities must exhibit demonstrable Economic Substance as of April 30, 2019, and make reports and notifications to the Regulatory Authority from the financial year 2019 and thereafter or will risk fines and administrative penalties.

Economic Substance Regulations

*Initial Consultation is FREE

OUR DIFFERENCE

What Sets Our Service Apart

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Methodology & Clear Advice

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Knowledge of UAE Legislation & BEPs

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Experience of MOF & FTA Processes

Economic Substance Regulations

OUR EXECUTION

How We Deliver

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Consult

Our advisor will undertake an assessment to review your entity to determine Central Management & Control and Relevant Activities

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Notification

We can support your notification or exemption submission and provide a high level analysis

Reporting

We clarify your reporting obligations and support you to prepare the submission.

Want to Improve Cost & Performance?

We’ll provide best practice quality processes, expertise and platforms to run your business more effectively.

Economic Substance Regulations Resources

TESTIMONIALS

SimplySolved

“Simply Solved is pretty amazing when it comes to helping us with our VAT filling. We don’t have much information with regarding to the New VAT Law of Dubai but with SimplySolved guiding us, we easily managed our VAT in no time.”

SimplySolved

“Simply Solved helped us very well to reduce our VAT issues, they are providing us extremely good and proper service including a platform.”

Feel free to contact us for any clarification.”

SimplySolved

“Our transactions are complex and we were unsure how to manage the new VAT rules, with Simply Solved they helped us fully comply to the FTA and submit our report with all the details available for us to understand”

EXIM JEWELLERS L.L.C

 

“Simply Solved employees are helpful and cooperative With Simply Solved everything is SIMPLY SOLVED.”

 Thank You.

FAQ’S

Am I affected by the Legislation?

This is dependent on whether you entity conducts a Relevant Activity. We recommend an assessment to ensure you are clear and can manage your obligations.

When are you required to file the reporting?

Affected Licensees must comply with the following two annual filing requirements: Affected Licensees must comply with the following two annual filing requirements:

1. Notification: File a notification within 6 months from the end of the relevant financial year (FY) 

2. Report: File a report within 12 months from the end of the relevant FY if earning income from a RA during the FY

What are the penalties?

Penalties for non-compliance with the ESR are broad and significant. Financial penalties include the failure to Penalties for non-compliance with the ESR are broad and significant. Financial penalties include the failure to:

Submit a notification                              20k

Submit a report                                     50k

Provide accurate or complete information 50k

Demonstrate sufficient substance in the UAE- the first failure is AED 50k and the second consecutive instance of failure is AED 400k.

How do we support you?

We can provide comprehensive assistance to We can provide comprehensive assistance to

• Assessment of ESR Relevant Activities & obligations

• Compliance and reporting obligations and assistance 

• Drafting responses to enquiries from the UAE authorities

• Supporting the appeals process, and

• Advice in relation to areas of non-compliance and actions to move the entity into a compliant position.

LET US SIMPLYSOLVE IT FOR YOU

Schedule a Consultation

Whether you have an existing Finance, Tax,  HR, & IT function operating its own system and process or a small company needing complete outsource services, we have the flexibility to serve your business.

Sun - Thur: 9am-6pm, Fri - Sat: Closed

Office M11, Curve Building,
Sheikh Zayed Rd Dubai Al-Quoz 3 Dubai,
PO Box 116701 United Arab Emirates

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