UAE: ESR Notification Deadline for Entities with Financial Year Ending 2021 is December 31, 2022

By BMS AUDITING

Comply with Economic Substance Regulations Before 31st December 2022 to Avoid Penalties

UAE: ESR Notification Deadline for Entities with Financial Year Ending 2021 is December 31, 2022

The deadline for submitting ESR reports for the fiscal year ending December 31, 2021, is December 31, 2022.

The ESR Report deadline is approaching soon. Thus, comply with the Economic Substance Report submission on or before 31st December 2022. The deadline to submit ESR Report is within 12 months of your financial year-end.  For Example, If your Financial year ended on 31st December 2021, you need to file your ESR report by no later than 31st December 2022.

The deadline to submit ESR Notification is within 6 months of your financial year-end. For Example, if your financial year ended on 30th June 2022, you need to file your ESR Notification by no later than 31st December 2022.

Under the UAE Ministry of Finance Guidelines on Economic substance Regulation(ESR), for organizations engaged in any ESR-relevant activities, the due date for filing an ESR Notification is six months from the end of the financial year.

However, if the business has generated income from the relevant activities (unless exempt), the ESR Report needs to be filed within twelve months from the end of the financial year.

Failure to submit the ESR report and ESR Notification within the deadline will result in penalties ranging from AED 20k to AED 50k.

Penalties of this range could hurt the company's reputation and hit them financially; therefore, businesses must file ESR Reports on time.

BMS Auditing is here to help you comply with these requirements efficiently and professionally.

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