The Ministry of Finance of the United Arab Emirates (herein the MOF) has published its notice regarding ESR filing requirements and deadlines.
In accordance with Article 6.7 of Ministerial Decision 100 all Notifications and Economic Substance Reports must moving forward only be submitted electronically on the Ministry of Finance Portal. Licensees and/or Exempted Licensees can commence filing on the Ministry of Finance portal once it goes live, which is scheduled for the first week of December 2020.
All notifications must be submitted within six months from the end of the Financial Year. Licensees that already submitted a Notification directly to their Regulatory Authorities are required to re-submit this Notification on the Ministry of Finance Portal once available. The filing deadline for notifications that are due before the Ministry of Finance Portal is available will be extended to 31 December 2020.
The filing deadline for Economic Substance Reports for a Financial Year commencing on or after 1 January 2019 and ending on or before 31 December 2019 shall be 31 December 2020. This deadline also applies to Licensees and Exempted Licensees (where applicable) that have a short Financial Year ending on or before 31 December 2019
Penalties
Licensees and/or Exempted Licensees that fail to submit/resubmit their Notification along with the required supporting documents by 31 December 2020 will be issued a penalty of AED 20,000 under Article 13 of Decision 57 for failure to provide a Notification.
Licensees and/or Exempted Licensees (where applicable) that fail to submit their Economic Substance Report within the aforementioned period shall be subject to a penalty of AED 50,000 under Article 14 of Decision 57 for failure to provide an Economic Substance Report.
VAT Guide will be happy to help you while the submission of the ESR notifications and ESR reports.#nbsp