Economic Substance Regulations – Notification deadlines update (April 2020)

Economic Substance Regulations – Notification deadlines

UAE introduced Economic substance regulations (ESR) in 2019 and since then Ministry of Finance has published various guidance notes and FAQs. Please refer to our previous articles on ESR ("ESR Update 3","ESR update 2","ESR update 1") in UAE

Cabinet Resolution No. 58 of 2019 was issued by the Ministry of Finance to determine Regulatory Authorities for each of the “Relevant activities”, and included the free zones and financial free zones (that have issued licenses for the relevant activities) in the list (Cabinet resolution 58 of 2019). Many of the regulatory authorities have informed the businesses on the deadlines and procedures for filing ESR notification.

Please find below details of the latest ESR notification deadlines:

1.
Dubai Airport freezone authority (DAFZA) – Notification deadline 3 May 2020

2.
Dubai Multi Commodities Centre (DMCC) – Notification deadline 30th June 2020

3.
Ajman freezone – Notification deadline 30th June 2020

4.
Ras Al Khaimah International Corporate Centre (RAKICC) – Notification deadline 30th June 2020

5.
Ras Al Khaimah Economic Zone (RAKEZ) – Notification deadline 30th June 2020

6.
Dubai International Financial Centre (DIFC) – Previous date was 31st March 2020 but is not applicable anymore. New date is yet to be announced

7.
Abu Dhabi Global Markets (ADGM) – Previous date was 31st March 2020 but new date is yet to be announced

8.
Ministry of Economy – Notification deadline pending to be announced

9.
Jebel ali freezone authority – Notification deadline pending to be announced

Regarding the regulatory authorities, which are yet to announce the notification deadline, it could be expected that the deadline will fall in Q2 of 2020. Hence, as first step, it is important for businesses to finalise their assessments on whether or not they are carrying on a relevant activity for the purposes of the ESR, which is an important part of the notification.

Article compiled by: Ms. Bhawna Chopra (Partner – Tax Advisory)

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.

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.

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