Al Fakhar Accounting Approved Auditors & Tax Agents in UAE

Al Fakhar Accounting, led by Fakhar Hayat (FCCA UAECA) – Providing Expert Audit, Tax & Accounting Solutions Across Dubai & UAE Free Zones including DMCC, DAFZA, JAFZA, DIFC, Meydan & More, in Collaboration with MOE-Registered Auditors & FTA-Registered Tax Agents | Call/WhatsApp: ‪+971 50 116 9031
Al Fakhar Accounting, led by Fakhar Hayat (FCCA UAECA) – Providing Expert Audit, Tax & Accounting Solutions Across Dubai & UAE Free Zones including DMCC, DAFZA, JAFZA, DIFC, Meydan & More, in Collaboration with MOE-Registered Auditors & FTA-Registered Tax Agents | Call/WhatsApp: ‪+971 50 116 9031
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ESR Notification Filing Services

The Economic Substance Regulations (ESR) are another key regulatory requirement for companies registered in the UAE. Entities are required to comply with ESR requirements outlined in the Cabinet Resolution 57/2020, which repealed the previous Cabinet decision 31/2019.

ESR regulations require UAE mainland, offshore, and free zone companies that carry out relevant activities to maintain and demonstrate adequate economic presence in the UAE. Filing the Economic Substance Notification annually to the authority is one of the key requirements as per the ESR regulations (submitting the ESR Report and meeting the ES test are the other two). Companies must ensure that their ESR filing services are accurate and submitted within the specified deadlines to avoid penalties.

If you’re looking for expert assistance with ESR filing in the UAE, it’s essential to work with a qualified firm that understands the full scope of ESR compliance.

Al Fakher Accounting, one of the best ESR consultants in Dubai, can help you navigate the complexities of ESR compliance with confidence. We provide top-notch ESR notification filing services in Dubai so that you can ensure compliance and avoid hefty penalties.

Understanding UAE’s ESR Regulations

The ESR is aligned with the Organisation for Economic Co-operation and Development’s (OECD) global standard to prevent and control harmful tax practices. The UAE introduced the ESR to honor its commitment as a member of the OECD Inclusive Framework and in response to an assessment of the UAE’s tax framework by the European Union Code of Conduct Group on Business Taxation.

Al Fakher Accounting supports businesses in understanding and complying with these regulations to maintain transparency and uphold international tax standards. Our expert team helps companies align their operations with ESR requirements, ensuring compliance and minimizing risks related to harmful tax practices.

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Relevant Activities Subject to ESR in the UAE

Companies carrying out the following nine relevant activities are required to comply with ESR requirements in the UAE:

  • Banking Businesses

  • Insurance Businesses

  • Investment Fund Management Businesses

  • Lease-Finance Businesses

  • Headquarter Businesses

  • Shipping Businesses

  • Holding Company Businesses

  • Intellectual Property Businesses

  • Distribution and Service Center Businesses

Al Fakher Accounting specializes in assisting companies engaged in these activities to meet their Economic Substance Regulations obligations. Our experienced team provides tailored solutions to ensure timely and accurate compliance, helping you avoid penalties and maintain good standing with regulatory authorities.

Applicability of ESR Notification Filing in the UAE

Every Licensee (companies that carry out any relevant activity/activities under ESR) and the exempted licensee is required to submit the ESR notification to the Regulatory Authority annually. Hire Al Fakher Accounting’s ESR notification filing services in Dubai to notify the regulatory authority in line with the regulations. Our team ensures that businesses meet all compliance obligations, including ESR filing, to prevent any regulatory issues.

A licensee can be either a juridical person (incorporated inside or outside the UAE); or an Unincorporated Partnership registered in the UAE (including a Free Zone and a Financial Free Zone) and carries on a Relevant Activity under ESR.

An exempted licensee under ESR in the UAE can be any of the following:

  • A Licensee that is an Investment Fund

  • A Licensee that is a tax resident in a jurisdiction other than the UAE

  • A Licensee that is wholly owned by one or more residents in the UAE, which is not part of an MNE Group; and only carries out business in the UAE

  • A Licensee that is a branch of a foreign entity the Relevant Income of which is subject to tax in a jurisdiction other than the UAE

  • Any other Licensee as determined under a decision of the Minister of Finance

ESR Notification Requirement for UAE Companies

Both the Licensee and Exempted Licensee are required to notify the following information to the Regulatory Authority:

  • The specific Relevant Activity performed by the entity during the Relevant Financial Year

  • Inform whether the company has generated Relevant Income during the Relevant Financial Year

  • Date of commencement and end of its Financial Year

  • Any other information or documents requested by the Regulatory Authority

ESR Notification Requirements for Exempted Licensees
Apart from the mandatory information, an Exempted Licensee must submit all information and documentation evidencing its status as an Exempted Licensee, and any further information as may be requested by the Regulatory Authority. Al Fakher Accounting’s ESR filing services in Dubai can ease the complexities of the process.

Deadline for Filing the ESR Notification
The ESR notification in the UAE needs to be filed within six months from the entity’s financial year-end. Failing to comply with ESR filing requirements within the deadline can lead to severe penalties.

Timely ESR filing in the UAE is crucial to ensure your company remains compliant with federal regulations and avoids unnecessary penalties.

Al Fakher Accounting’s ESR consultants in Dubai can help you meet deadlines. The following table provides clarity on determining ESR notification filing deadlines in the UAE:

Financial Year End Deadline
31 March 30 September
30 June 31 December
30 September 31 March
31 December 30 June

Penalty for Not Submitting ESR Notification
Entities that fail to file the ESR Notification before the deadline will incur a penalty of AED 20,000. Al Fakher Accounting’s ESR consultants can help you submit the ESR Notification on time.

Penalty for Providing Incorrect Information in ESR Notification
Providing incorrect or false information in the Notification will lead to a hefty penalty of AED 50,000. Moreover, intentionally providing incorrect or false information or incorrectly claiming an exemption from the Economic Substance Regulations can result in the Licensee being deemed to have failed the Economic Substance Test for the relevant Reportable Period.

Al Fakher Accounting’s ESR Notification Filing Services in Dubai, UAE

Al Fakher Accounting offers comprehensive services for both ESR assessment and notification filing. Our ESR filing services in the UAE include:

  • Assessing the ESR Applicability
    We can help you determine whether your company falls under the scope of ESR.

  • Economic Presence Evaluation
    Our highly qualified ESR consultants in Dubai evaluate the adequacy of your entity’s economic presence in the UAE.

  • Compliance Advisory
    We provide insights to align your entity’s economic substance with ESR requirements.

  • Notification Preparation
    We assist in preparing and submitting the ESR notification document on time.

  • Regulatory Compliance
    We ensure compliance with the ESR requirement to file notifications within six months after the end of the relevant financial year.

  • Strategic Advisory
    We enhance your compliance by providing strategic ESR advisory and filing services in the UAE.