ESR or Economic Substance Regulation submission had the deadline of March 31, but due to the pandemic of COVID-19 in these days, a few free zones have extended the deadline for the companies.
As they postponed the deadline for the companies, Younis Haji Al Khouri, Undersecretary at the Ministry of Finance recently announced the fact that the cut-off date is June 30 and they will make certain that all the regulations are followed as per the deadline, given by the Ministry of Finance. He has also added this move ensure ultimate compliance.
Dubai International Financial Centre had also asked the entities for submitting the ultimate economic substance notification on the DIFC portal. Though the March 31, 2020 deadline is no longer applicable, and this has been mentioned on their official website. UAE is a committed member of the OECD Inclusive Framework.Thus, it had come with a Resolution on the Economic Substance on April 30, 2019. It had done so
As per the evaluation of tax framework of United Arab Emirates as well. The ultimate rules and regulation required companies, which simply carry out the relevant activities, to maintain the sufficient economic presence in a nation regarding some of the activities they undertake. It is applied to financial year commencing on or from January 1, 2019.
Abu Dhabi Global Markets have also stated in a recent note that ESR notification got extended until further notice comes. Keeping the recent situation or this pandemic in mind, this can be considered as one of the big reliefs in the general business. Businesses and companies can utilise this extension for analysing their business details and financial aspects.
