UAE Economic Substance Regulations: Updated notification filing requirements
28 June, 2020
In brief
The UAE introduced Economic Substance Regulations (“the Regulations”) that became effective as of 1 January 2019. There are potentially two broad filing requirements under the Regulations: (i) Notification form and (ii) Annual substance return. Under the ESR, all filing requirements fall under the remit of the relevant Regulatory Authority, and as such it is the Regulatory Authorities that set the requirements, deadlines and format for notification filing as they believe is appropriate and which may vary. Below, we have summarised the most up to date filing requirements as released by some of the Regulatory Authorities.
In detail
| Who is required to file 1 | How to file | When to file | Form released | |
|---|---|---|---|---|
| DIFC | All entities/ licensees, including those who do not undertake relevant activity | Via DIFC portal | By 30 June 2020 (extended from 12 June 2020) | Yes |
| ADGM | Only entities/ licensees that are carrying out relevant activity | Via email | By 30 June 2020 | Yes |
| DAFZ | All entities/ licensees, including those who do not undertake relevant activity | Via DAFZ portal | By 15 June 2020 (extended from 31 May 2020) | Yes |
| DMCC | All entities/ licensees, including those who do not undertake relevant activity | Via DMCC portal | By 30 June 2020 | Yes |
| RAK ICC | All entities/ licensees, including those who do not undertake relevant activity |
Via RAK ICC portal by a registered agent only (online form) |
By 30 June 2020 | Yes |
| Securities and Commodities Authority (SCA) | SCA have contacted via email all Investment Management Firms, Management Company Firms regulated by SCA requesting submission of the notification form | Via e-mail | By 30 June 2020 (extended from 31 March 2020) | Yes |
| AJMAN FZ | All entities/ licensees, including those who do not undertake relevant activity | Via email | By 30 June 2020 | Yes |
RAK EZ |
All entities/ licensees, including those who do not undertake relevant activity |
Via RAK EZ portal (online form) |
By 30 June 2020 |
Yes |
Dubai World Trade Centre |
All entities/ licensees, including those who do not undertake relevant activity |
By 7 July 2020 | Yes |
|
Dubai Aviation City Corporation |
All entities/ licensees, including those who do not undertake relevant activity |
By 23 June 2020 (extended from 7 June 2020) |
Yes |
|
Dubai Healthcare City (DHCC) |
Only entities/ licensees that are carrying out relevant activity |
Via DHCC portal (online form) |
By 7 June 2020 (extended form 31 May 2020) |
Yes |
Ministry of Economy |
Only entities/ licensees that are carrying out relevant activity |
Online form here |
By 30 June 2020 |
Yes |
Hamriyah Free Zone Authority (HFZA) |
Only entities/ licensees that are carrying out relevant activity |
TBC |
By 30 June 2020 |
TBC |
Sharjah Airport International Free Zone (SAIF) |
All entities/ licensees, including those who do not undertake relevant activity |
Online form here |
By 30 June 2020 |
Yes |
International Free Zone Authorities (IFZA) |
Only entities/ licensees that are carrying out relevant activity |
Online form here |
By 30 June 2020 |
Yes |
Dubai Silicon Oasis (DSO) |
All entities/ licensees, including those who do not undertake relevant activity |
By 9 June 2020 (extended from 31 May 2020) |
Yes |
|
Dubai Development Authority (DDA) |
Only entities/ licensees that are carrying out relevant activity |
Via portal link here (excel form to be downloaded and uploaded once completed) |
By 25 June 2020 |
Yes |
Abu Dhabi Media Zone Authority |
All entities/ licensees, including those who do not undertake relevant activity |
Online form here |
By 30 June 2020 |
Yes |
Umm Al Quwain Free Trade Zone (UAQ) |
All entities/ licensees, including those who do not undertake relevant activity |
Via UAQ portal |
By 30 June 2020 |
Yes |
Fujairah Freezone |
All entities/ licensees, including those who do not undertake relevant activity |
By 15 June 2020 |
Yes |
|
KIZAD |
All entities/ licensees, including those who do not undertake relevant activity |
By 20 June 2020 |
Yes |
|
Jebel Ali Freezone (JAFZA) |
All entities/ licensees, including those who do not undertake relevant activity |
By 30 June 2020 |
Yes |
|
Central Bank |
All banks and other licenses financial institutions |
Via CBUAEIRR - CBUAE Integrated Regulatory Reporting System hosted in Central Bank Service Portal (online form) |
By 30 June 2020 |
Yes |
| Insurance Authority (IA) | TBC | Via IA's portal | By 30 June 2020 | Yes |
1 This information is based on the guidance issued by authorities and may be applied differently in practise
The approach of the different authorities in relation to which entities should be filing the initial notification is currently inconsistent, and therefore it is important to monitor announcements/ clarifications that are made by the relevant Regulatory Authorities.
We expect the authorities to clarify this and other points as and when they release notification forms.
Immediate actions
To avoid non-compliance with these rules and potential penalties, as a first and immediate step all UAE entities (both companies and branches) should assess whether they fall under the UAE Economic Substance rules (in 2019) and which of the below compliance obligations they may have (if any):
- Notification filing
- Having sufficient substance in the UAE and how to demonstrate this
- Filing of an annual substance return
If the entity does fall under these rules and has to demonstrate sufficient substance in the UAE, it should also make an assessment as to whether it can satisfy the economic substance tests prescribed by the regulations.
Are you ready?
- Does your UAE entity (company or a branch) fall under these rules?
- What compliance obligation does it have in respect to the 2019 financial year?
- Can your UAE entity satisfy the economic substance test?
How we can help
If you haven't yet considered the impact of the UAE Economic Substance Regulations on your company/ branch in the UAE and require any of the below:
- Assessment on whether you fall within the rules
- Assessment on whether you can satisfy the Economic Substance test
- Notification filing assistance
Our experienced team will be happy to analyse your business activities, determine whether you are within the rules and guide you as to what actions are required to ensure full compliance.
Related content
Contact us
Tatyana Rahmonova
Manager - International Tax Services, PwC Middle East
Tel: +971 (0)50 900 3521
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