The UAE has already implemented the ESR (Economic Substance Regulations) which are applicable across all its jurisdictions including the free trade or financial free trade zones like the DIFC. For the DIFC, the Registrar of Companies holds responsibility for administration of the ESR for all entities including those which come under DFSA regulation.
Key points to note about ESR
- All entities in DIFC have to mandatorily submit their economic substance notification by the 30th of June, 2020, on the DIFC Client Portal.
- The Ministry of Finance in the UAE has released its Relevant Activities Guide which will help you figure out whether your business falls in a category which is relevant or under the ESR.
- Your company may also have to file the economic substance notification within a period of 12 months from the end of the financial year for demonstrating that it adheres to all ESR based needs. Information pertaining to ES returns will be released in the second half of this year.
- The UAE Economic Substance Legislation is readily available at the website of the Ministry of Finance.
Notification Deadline Updates
Here are the latest economic substance notification due dates and updates:
- DIFC (Dubai International Financial Centre) mandates filing of notifications by the 30th of June, 2020. The website of the DIFC will help you with the procedure for filing notifications.
- The due date is 30th June, 2020, for the ADGM (Abu Dhabi Global Market) and this has been released as the revised date.
- DAFZA (Dubai Airport Freezone Authority) has a revised deadline of 31st May, 2020. Licensees have already received their notifications through emails.
- DMCC (Dubai Multi Commodities Centre) has 30th June, 2020, as its deadline for filing economic substance notifications.
- RAKEZ (Ras Al Khaimah Economic Zone) has 31st May, 2020, listed as its deadline for filing notifications.
- SCA (Securities and Commodities Authorities) has a deadline of 30th June, 2020 post extension.
- AFZ (Ajman Free Zone) has the same notification due date of 30th June, 2020.
- RAKICC (Ras Al Khaimah International Corporate Centre) has an extended deadline of 30th June, 2020, for filing notifications.
- DSOA (Dubai Silicon Oasis Authority) had a deadline of 31st March, 2020.
Companies have anyway been required to file economic substance notifications by 30th June this year. Multiple authorities also require filing of economic substance notifications by all licensees, irrespective of whether they have been involved in relevant business activities in the specified timeframe. All licensees in liquidation may also be required to file their notifications without any exemptions until they are completely liquidated or struck-off the rolls. DIFC has stated that those entities which have already been dissolved or liquidated before the submission deadline, will not have to file their notifications.
Related Article : Economic Substance Notification Due Date is Declared for RAKEZ
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