ESR Required Documents

ESR Filing   

The UAE's Economic Substance Regulations (ESR) are in place. Economic Substance Regulations (ESR) apply to all Licensees that carry out a Relevant Activity in the UAE. Entities claiming an exemption (such as Investment Funds or those wholly taxed outside the UAE) must still file an ESR Notification to claim their status.

The European Union placed the UAE on its list of non-cooperative tax jurisdictions, and the restrictions were published in response to concerns raised by the European Commission. Additionally, the legislation should help the UAE's legal system better conform to the guidelines outlined in the OECD Base Erosion and Profit Shifting (BEPS) action plan.

All UAE entities must assess whether they fulfill the 'economic substance' standards and plan how they will comply with the regulations, whether by strengthening UAE economic substance or restructuring.

ESR Reporting  

Businesses must meet the requirements of the Economic Substance Test and file the ESR Report, which includes submitting the information and documentation outlined in the Economic Substance Regulations within the relevant Financial Year.Licensees carrying out a Relevant Activity must file the ESR Notification within six months of the end of the financial year, and file the ESR Report (if required) within twelve months of the end of the respective financial year.

Following ESR Reporting, the National Assessing Authority issues a decision indicating whether the Licensee met the Economic Substance Test requirements within six years of the end of the relevant financial year.

ESR Check List  

• Company Name
• Registered office address
• Name of Manager in charge
• Mobile Number of the Manager in charge
• Relevant Activity(ies) the Licensee carried on during the Reportable Period: Yes/No from the mentioned 6 points.

• Banking Business
• Insurance Business
• Investment fund management business
• Shipping business
• Lease finance business
• Distribution and service center business

A Licensee is considered engaged in a “Distribution Business” if the Licensee purchases raw materials or finished products from a foreign group company, and distributes those raw materials or finished goods.

A Licensee is considered engaged in a “Service Centre Business” if it provides consulting, administrative, or other services to a foreign group company, and those services are in connection with the foreign group company’s business outside the UAE. 

• Headquarters business
• Intellectual property business
• Holding Company business

• Brief Explanation for the Core Income Generating Activity
• Foreign Company details(If applicable)
• Did the Licensee earn income from the Relevant Activity during the Reportable Period?
• Is the income earned from the Relevant Activity subject to tax outside the UAE?
• Details of Board meetings held in UAE for the year 2022 (Copy of Board Meeting Minutes) 

ESR Documents Required  

• Trade License
• Financial statements for the reporting period
• MOA Copy
• Employee list and Physical Assets details in UAE
• Tenancy contract copy
• Registered Email

Conclusion  

Reyson Badger provides full services to assist companies in complying with the UAE's ESR Filing Required Documents. Our areas of competence include:

• ESR Compliance Guidance: Expert assistance in meeting ESR regulations.
• Document Preparation and Submission: Help in preparing and submitting required document
• ESR Notification and Reporting: Reyson Badger will help you regarding ESR Notification and file the ESR on time.