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Economic substance regulations (ESR) compliance is to be done for every financial year.

Companies are required to do assessment of their activities and transactions for each financial year and take action accordingly for the filing requirement with UAE Ministry of finance (MOF).

For the financial year 2020, below deadlines are applicable:

• ●
• ESR notification (as applicable after conducting assessment of the transactions carried out in 2020/2020-21) needs to be filed within 6 months of end of financial year.

Financial year end	Due date of ESR notification (as applicable)
31st Dec 2020	30th June 2021
28th Feb 2021	31st Aug 2021
31st Mar 2021	30th Sept 2021
30th June 2021	31st Dec 2021

• ●
• ESR report (as applicable) needs to be filed within 12 months of financial year.

Financial year end	Due date of ESR report (as applicable)
30th June 2020	30th June 2021
31st Aug 2020	31st Aug 2021
30th Sept 2020	30th Sept 2021
31st Dec 2020	31st Dec 2021

As first step, companies need to assess the financial transactions conducted during the year and conclude if these fall within any of the relevant activities defined in the ESR law.

Once that assessment is made and concluded on the relevant activity, then the notification and report needs to be filed within the timelines otherwise there are penalties (AED 20,000 for failure to submit notification and AED 50,000 for failure to submit report) involved for compliance failure.

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If you would like to discuss any ESR matters, please drop us an email at info@premier-brains.com or call us at +971 4 3542959.

This document is only for information purposes and should not be construed as an advice. It does not necessarily cover each aspect of the topic with which it deals. You should not act upon the contents of this document without receiving formal advice on your particular circumstances

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