Steps to follow by an organization for ESR

1. Steps to follow by an organization for ESR 21

2. Economic Substance Regulations or ESR service is one of the latest additions to the roster of regulations that the companies in the United Arab Emirates need to follow. According to the regulations, the 30th of June was the last deadline if the financial year ending for your company is the 31st of December. It does not matter what the location of your company is. Be it a Free Zone, a Mainland, or an offshore company, and Economic Substance Regulation are necessary to be followed by the business to avoid penalties and other forms of punishment in the future. This article will equip you with a list of steps that a company can take, which will be of exceptional use to the management while filing the Economic Substance Regulation Notification. These steps can be followed the next time the management is looking to fill the ESR notification in the UAE. Steps wanted to be served by the Company Management Below are six steps that demand to be followed by the management of a business. These actions will help the company fulfill all the Economic Substance Regulation requirements and assist the company in avoiding penalties and other punishments in the future. 1.Find if ESR applies to your company. The first step for management is to find out if the ESR regulation applies to the business. The management needs to check if the company has conducted any relevant business activity in the previous financial year. There are many different activities added to the list of relevant activities in the UAE for ESR. 2.Choose the present status of the company. According to the Cabinet Decision No. 57 of 2020, there are two statuses which a business can have regarding ESR. The company can either be an Exempted Licensee, or it can be a Licensee. Only the Licensee needs to file for the Economic Substance Regulation. A VAT consultancy inDubai that fulfils

3. any of the following requirements can qualify as an Exempted Licenses and is therefore exempted from the Economic Substance Regulation. If the licensee is a tax resident in a jurisdiction other than UAE An Investment Fund If the company is a part of the business group which carries its activities in the UAE If the company is wholly owned by a resident or a group of residents in the UAE The company is a branch of a foreign company, but the company's income is taxable outside UAE. 3.Provide all the necessary information According to Article 8 of the Cabinet Decision, a company should provide the following information to the concerned authority every year. The information includes the following: The accounting services carried out by the business and did this business activity comes under relevant activities. The date on which started the business and the relevant financial year-end. If the company is an exempted licensee, it should submit all the necessary documents to provide evidence of its exempted status. The relevant authority can also demand any other VAT tax consultant in Dubai document if necessary. Information regarding the relevant income generated by the business. 4.Submit the regulation data online The government of the UAE has made it simple to file for ESR. It can be filed through an online portal designed by the Ministry of Finance (MoF). To access this portal, the companies must set up a corporate account. The information provided in the corporate account will be used to file the ESR.