Submission of ESR Notification
A notification must be filed if you are a corporate entity or partnership that undertake any of the following relevant activity during the financial year
- Banking business
- Insurance Business
- Investment fund management business
- Lease-Finance business
- Headquarter Business
- Shipping Business
- Holding Company Business
- Intellectual property business
- Distribution and service center business
Do you follow Jan to Dec Financial Year?
If yes, now is time for submission of Economic Substance Regulations (ESR)Notification!
The Requirements
A licensee (who is not an exempted licensee) is required to satisfy the following conditions to meet the Economic Substance Test in relation to its Relevant Activity.
- The licensee conducts the necessary Core Income-Generating Activity in the UAE
- The Relevant Activity is directed and managed in the UAE
- The licensee must, with regard to the Relevant Activity
- have an adequate number of physically present, qualified full-time employees in relation to the activity in the UAE
- have adequate operating expenditure incurred in the UAE; and
- have adequate physical assets in the UAEPenalty
- Non-compliance with the obligation to file the notification before the deadline is subjected to a penalty of AED 20,000
- Providing incorrect or false information in the notification is subjected to a penalty of AED 50,000
Please feel free to call us to know more on how we can help you.
Office Phone: 04 2598985 Mobile:055 8697041 Email: thomas@agxauditors.com