Economic Substance Regulations (ESR) in the UAE update

Economic Substance Regulations (ESR) in the UAE update

ESR Report Template Released

The Ministry of Finance (MoF) has just released the format of the ESR report required for the reporting of the economic substance regulations in the UAE in accordance with Cabinet Resolution No. 57 of 2020 (“Amended Regulations”), along with updated Guidance clarifying the amended ESR through Ministerial Decision 100 of 2020 dated 19 August 2020 (“Amended Guidance), which update and replaces the original ES Regulation (Ministerial Decision No. 215 of 2019 and Cabinet Decision No. 31 of 2019).

The report content is in accordance with the regulations and the MoF guidance and contains Seven main sections, and Three required confirmations.

The required sections are as the following:

A: General information;

B: Branch details;

C: Reportable period;

D: Updated information;

E: Financial information;

F: Relevant activity information; and

G: Ownership information;

The required confirmations are as the following:

  • Directed and managed in the UAE;
  • Declarations; and
  • Preview and summary.

Reporting and submission:

Although not determined yet, it is expected that the reporting and submission be online through the Federal Tax Authority (FTA) website.

The reporting and submission deadline for the reporting period of 01st January through 31st December 2019, is by 31st December 2020.

The report template can be viewed here.

How can we help:

XB4 has the experience, knowledge and capabilities of helping businesses on the requirements and reporting of the ESR in the UAE. If you require any help or support, please feel free to contact us here.

UPDATE (Dec 2, 2020): ESR report filing portal is open.

The Ministry of Finance (MoF) filing portal is now available for businesses to submit their Notifications and Economic Substance Reports. The portal is now live in and will allow companies to file both their Notifications and Economic Substance Reports.

The reporting deadline for the business first reporting period is 31st December, 2020.

The business that has already submitted a Notification to a Regulatory Authority will be required to resubmit on the MoF Portal. The deadline for resubmission is 31 December 2020 at the latest.

The MoF has also provided the following quick guide to help navigate the portal easily. (Download the guide).