UAE ESR Submission Deadline 30th September (400k fines?)

[AbsetJW]

A friend of mine just emailed me a notification about an ESR submission deadline.

Does anyone have any clue what this is about?

Is it something freezones need to submit?

First I've heard of it!

 

[Don]

A friend of mine just emailed me a notification about an ESR submission deadline.

Does anyone have any clue what this is about?

Is it something freezones need to submit?

First I've heard of it!

Failure to submit the reports or failure to meet the economic substance test would result in penalties.

1st year = AED 50,000 penalty + Information exchange with foreign competent authorities
2nd consecutive year =AED 400,000 penalty + Information exchange with foreign competent authorities + Suspension, cancellation or non-renewal of trade license

You should put in place demonstrable documentary evidence supporting the Economic Substance Tests and documenting the basis of preparing the report, which may be subject to audit up to a period of six years from the end of the FY.

As a proponent of cross-border structures, I'd like to highlight that entities that are tax residents outside of the UAE are exempt from Economic Substance Reporting (only need to submit notice)

 

[Clank]

Not all activities require this, only a few of them.

Are your sure yours is included in this group?

 

[AbsetJW]

Has anyone actually done this?

 

[Paul Tudor Jones]

UAE looking like more of a tax hellhole by the day

 

[Ancova]

Only the following activities:

• 
  IP or Intellectual Property Business
• Shipping Business
• Headquarters Business
• Investment Fund Management Business
• Banking Business
• Service Centre Business
• Holding Company Business
• Lease/Finance Business
• Insurance Business

 

[unknownaussie1996]

Does anyone know if a FZE e-commerce business who has a US LLC for stripe and banking in the US would be classified as a holding company business?

 

[Ancova]

Does anyone know if a FZE e-commerce business who has a US LLC for stripe and banking in the US would be classified as a holding company business?

Nope