UAE’s commitment as member of OECD Inclusive framework and in response to assessment of UAE’s tax framework by European Union code of conduct group on taxation, the UAE’s Government has provided guidance on application of the ESR in September 2019 under which the businesses engaged in “Banking, Insurance, Investment Fund Management, Leasing, Headquarters, Holding company, Shipping, Intellectual Property (IP) and Distribution & Service Centre” activities are required to maintain and demonstrate an adequate “economic presence” in the UAE relative to their activities called as Economic Substance Test. The regulation is applicable since January 01, 2019.
Entities satisfying the Economic Substance Test are required to submit the following to their respective regulatory authority: • Annual notification form • Economic Substance Report within 12 months from the end of their financial year
Exempt entities and entities which have not earned income in a financial year from relevant activities are not required to submit the Economic Substance Report. However, they must submit the Annual notification form to their respective authority. VA experts have submitted Annual notification forms and Economic Substance Reports on behalf of our clients to authorities in UAE in the year 2019 and are proud of the appreciation received from our clients on the professional services rendered on their behalf to their respective authorities. We ensure our clients our credibility and professionalism in submitting their correct reports to the authorities while adhering to the professional standards and ESR requirements.