Question

Answer

Yes, in the event your entity conducts a Relevant Activity.

There are changes in the ESR regulations which require reassessment if your ESR relevant activities and to file an accurate declaration under the law.

In addition, the forms now required a single declaration for UBO and ESR for your entity.

The online portal is live and is available Here , the MoF has issued the guidelines for the ESR notification and the ESR Report, which provided insight into the ESR compliance on the required data and records.

Dates for filing requirements can be found Here

Yes,

Every financial year your entity is operating, you will be obliged to declaration by the stated deadlines for relevant activities for the previous financial year

If your Licensing Authority did not request a filing

or

you were out of scope for ESR in your last declaration, what is required and do you need to submit again?

Yes.

The updated Legislation introduced significant changes and it is advisable to reassess your obligations.

The MoF only requires a filing if your entity conducted relevant activities.

For the financial year starting on or after January 1, 2019, a company is required to submit ESR Notification within 6 months from the end of the relevant financial year and the ESR report, if applicable, within 12 months from the end of the relevant financial year.

Therefore, if your entity was incorporated on July 1, 2018 with its financial year ending June 30, 2019. What would be the first reportable period under the ESR?

ESR is applicable in relation to financial years commencing on or after January 1, 2019. Accordingly, the financial year of your entity from July 1, 2018 to June 30, 2019 would not be covered under this ESR filing.

The first reportable period for ‘Company D’ would be from July 1, 2019 to June 30, 2020.

The amended ESR legislation has introduced a category of ‘exempt licensees’ to reduce the burden for companies and covers

(a) Investment Funds,

(b) Licensee that is a tax resident in a foreign jurisdiction,

(c) a UAE branch of a foreign entity (if taxed in a foreign jurisdiction); and

(d) entities that carry out business in the UAE which are wholly owned by UAE residents/nationals and are not part of a multinational group.

A local company should be covered under category (d) and would be required to submit only the ESR notification along with certain documents on an annual basis.

Based on the category of the ‘exempt licensee’, the prescribed documents could include tax residency certificate of the foreign jurisdiction, details and tax residency certificate of the Head Office (Foreign Company), details of the shareholders of the companies and/or financial statements.

Affected Licensees and/or Exempted Licensees that fail to resubmit their Notification by due date will be subject to a penalty of AED 20,000 under Article 13 of Decision 57 for failure to provide a Notification.

Date for submissions can be found Here