Economic Substance Regulation (ESR) Reporting – Due Date Reminder

The Economic Substance Regulation (ESR) imposes a requirement for UAE entities, including offshore companies and branches of local and foreign companies, to maintain economic substance in the UAE for each Relevant Activity they perform and from which they earn income. Failure to meet annual filing requirements can result in penalties for non-compliance.

Scope of Economic Substance Regulation

The ESR highlights two annual filing obligations for licensees:

• ESR Report: Applicable to businesses that perform Relevant Activities, earn income from these activities, and do not qualify for any exemption under ESR.
• ESR Notification: Must be filed if the business is undertaking a Relevant Activity. This is applicable even if the business claims exemption from ESR or does not earn any income from the Relevant Activity.

Upcoming Deadlines

Below is a summary of the upcoming deadlines for ESR filing requirements:

UAE entities that conduct any one or more of the Relevant Activities must file a notification within six months of the end of the financial year (FY) on the Ministry of Finance’s (MoF) online ESR portal.