ESR Filing

The United Arab Emirates is a member of the OECD Inclusive Framework. The plan to introduce the Economic Substance Regulations came after the UAE landed on the EU’s tax blacklist. The implementation of the ESR Notification UAE helped the country improve its credibility and get off the blacklist. The ESR form UAE is a part of the ESR UAE guidelines which came into being in April 2019. These laws came into force in January of the same year and helped strengthen the nation’s position within the international market. Let us now take a closer look at ESR filing in UAE, and why it is essential.

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Requirements to meet Economic Substance Test in UAE

Demonstrate substance using an Economic Substance test

File a Notification six months before the end of the Reportable Period

File an Annual Substance Report/ Return with detailed information within 12 months of the end of the financial period.

What are the ESR filing guidelines?

The ESR UAE guidelines helped the country by improving the security and accountability of its taxation system. The Economic Substance Regulations introduced two new filing requirements, which are given below

Economic Substance Regulations or ESR Notification UAE

Annual Substance Return

All entities within the UAE that engage in Relevant Activities must file these two reports on time to stay compliant. The annual notification form ascertains that the entity falls under the purview of the ESR UAE guidelines. The secondary substance return details how the entity has been working towards maintaining the required economic substance within the country. This Substance Report must be filed at least twelve months before the end of the upcoming financial year.