The Economic Substance Regulations (ESR) are a vital compliance requirement for businesses registered in the UAE. Introduced under Cabinet Resolution 57/2020, these regulations mandate that UAE mainland, offshore, and free zone entities engaged in Relevant Activities maintain adequate economic presence. Filing an Economic Substance Notification annually is a key requirement, along with submitting the ESR Report and meeting the Economic Substance Test.
At AARMAK, we offer expert ESR Notification Filing Services to help businesses navigate these regulations with ease. Our specialists ensure your company complies with the ESR requirements, avoiding any potential penalties.
The UAE’s ESR aligns with the Organisation for Economic Co-operation and Development (OECD) standards, aimed at preventing harmful tax practices. As a member of the OECD Inclusive Framework, the UAE introduced the ESR to meet global tax transparency requirements.
Both Licensees (companies carrying out Relevant Activities) and Exempted Licensees must submit an ESR notification to the regulatory authority annually. This applies to entities incorporated inside or outside the UAE, including free zone and financial free zone entities involved in Relevant Activities.
Exempted Licensees include:
Both Licensees and Exempted Licensees must provide the following information when submitting an ESR notification:
Exempted Licensees must also submit documentation proving their exempt status.
The ESR Notification must be filed within six months from the entity’s financial year-end. Below are the deadlines for different financial year-ends:
| Financial Year End | ESR Notification Deadline |
|---|---|
| 31 March | 30 September |
| 30 June | 31 December |
| 30 September | 31 March |
| 31 December | 30 June |
At AARMAK, we offer a comprehensive range of services to assist businesses with ESR compliance:
AARMAK is a leading provider of ESR Notification Filing Services in Dubai, UAE. Our team of experts ensures that your business remains compliant with the UAE’s Economic Substance Regulations. We assess your operations across all emirates, both onshore and free zones, to verify whether your activities meet the ESR requirements. Our consultants also assist in preparing and submitting the necessary notifications and reports to the relevant authorities, helping you avoid penalties and ensuring smooth compliance.
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