The Ministry of Finance has therefore extended the deadline for submissions: please see the notice below.

To support businesses that may have been impacted by COVID-19 and temporary inaccessibility of the MoF Economic Substance Filing Portal, the Ministry of Finance has extended the deadline for businesses to submit their Notification and Economic Substance Report to 31 January 2021.

The revised filing deadlines for the 2019 Reportable Period are as follows: 

• Notification: The later of six months after the financial year-end, or 31 January 2021 
• Economic Substance Report: The later of 12 months after the financial year-end, or 31 January 2021 

Background 

On 10 August 2020, the UAE Cabinet of Ministers issued Cabinet Resolution No. 57 of 2020 (the “amended ES Regulations”) which replaces the original ES Regulations, along with updated Guidance clarifying the amended ES Regulations (Ministerial Decision 100 of 2020 dated 19 August 2020).

The amendments to the Economic Substance Regulation UAE  and Guidance provide welcome changes and additional clarity that should help reduce the overall burden on businesses in the UAE.

These changes include  

• to the definition of “Licensee”,  
• the introduction of some additional categories of exempted Licensees,  
• clarifications regarding the treatment of branches  

The UAE introduced economic substance law requirements for certain businesses on 30 April 2019 through the Cabinet of Ministers Resolution No.31 of 2019 on Economic Substance Regulations (“the original ES Regulations”). Further guidance on the application of the original ES Regulations was issued on 11 September 2019 pursuant to Ministerial Decision No. 215 of 2019 (“Guidance”).

In addition, the UAE MoF has updated the information on its economic substance website (link here).

For your complete understanding, read our Economic Substance regulation blogs.

Conclusion 

All UAE entities are strongly recommended to assess or reassess whether and which of their activities fall within the scope of the Economic Substance Regulations, and how to ensure they can meet the Economic Substance Test in respect of each relevant activity.

If your business receives income from a Relevant Activity and your business requires expert support, we can help minimise risks and costs.

Our trained consultants will help you understand the impacts & risks, whether it applies to your business, how to address the notification requirements, and manage the reporting obligations on an ongoing basis.

Talk to Us, Contact Us For Expert Support.

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