Upcoming Compliance under the Economic Substance Regulations
Upcoming Compliance under the Economic Substance Regulations
Who:
Licensee undertaking Relevant Activity during a financial year is required to file an annual notification.
When:
- Compliance requirement under the Economic Substance Regulations is annual in nature.
- The second notification for financial year ending December 31, 2020, is due by June 30, 2021.
Common Issues:
- Determination of appropriate relevant activity.
- Duplication of relevant activity.
- Not maintaining adequate documentation for board meeting in the UAE.
- Failure to fulfil the directed and managed test for branch of foreign company in the UAE.
- Some of the core income generating activities are performed overseas.
- Claiming an exemption from meeting the economic substance test.
- Calculation the income, expenses and tangible assets attributable to the relevant activity.
To know more, please reach us at [email protected].
