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When will you submit ESRs for the fiscal year ending March 2021?

ESR Notifications for the financial year ending March 2021 are due on 30 September 2021.

The Economic Substance Regulations (ESR) apply to companies and other business entities registered in the UAE, including in the Free Zones, that carry out any of the following Relevant Activities during the financial year:

  • Banking Businesses
  • Insurance Businesses
  • Investment Fund Management Businesses
  • Lease-Finance Businesses
  • Headquarters Businesses
  • Shipping Businesses
  • Holding Company Businesses
  • Intellectual Property Businesses
  • Distribution and Service Centre Businesses (Purchasing from foreign connected persons/ Providing services to foreign connected persons)

If the Company carries out one or more of the relevant activities during the financial year, it must comply with the following ESR requirements:

  1. ESR Notification within 6 months from the end of the financial year
  2. Conduct an ESR test and submit the report to the concerned authority within 12 months from the end of the financial year

Following are the due dates for the Company having a financial year as below:

Financial Year Ending on Notification Due Date Return Due Date
31st Mar 2021
30th Sep 2021
31st Mar 2022
30th Jun 2021
31st Dec 2021
30th Jun 2022

Please note penalties for non-compliance would attract:

Non-compliance Amended Penalty Amount AED
Failure to submit a Notification:
20,000
Failure to submit an Economic Substance Report
50,000
Providing inaccurate information
50,000
Failure to pass ES Test for first year
50,000
Failure to pass ES Test for the consecutive year
400,000

Are you looking for assistance from ALYA?

If you would like our assistance in handling the High-level ESR Assessment and assisting you with the submission of the ESR Notification and report within the deadline, then please let us know. You can rely on us for the best ESR Compliance services.

+971 524754007
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