The Economic Substance Regulations (ESR) serve as a pivotal measure to deter multinational enterprises from artificially redirecting profits to low or zero-tax jurisdictions where they lack substantial operational presence, exploiting favorable tax regimes. The UAE stands among such jurisdictions.
Consequently, the ESR mandates all entities engaged in mobile business activities to furnish an annual, detailed report to regulatory bodies. This requirement aims to substantiate the presence and authenticity of business operations within the UAE. The initial filing season pertaining to FY19 concluded by the close of 2020. Businesses are advised to prepare for the ensuing filing season to remain compliant with ESR obligations.
Aurega Accounting Services specializes in delivering comprehensive Management Consulting services, specifically addressing ESR Compliance in the UAE. Leveraging our extensive international tax expertise, we offer tailored support and guidance on ESR matters, ensuring seamless compliance through the following avenues:
- Conducting a thorough assessment to determine alignment with Relevant Activities, exploring potential exemptions available.
- Facilitating the filing of notifications, streamlining the administrative process for our clients.
- Evaluating compliance with Economic Substance Tests, providing strategic advice on maintaining necessary documentation to preemptively address any regulatory inquiries.
- Providing diligent assistance in compiling and filing reports, including all requisite supporting documentation.
- Identifying disparities between existing substance levels and the stipulated ESR requirements, offering strategic counsel on corrective actions.
- Offering adept support in addressing inquiries from regulatory authorities and the Federal Tax Authority (FTA).
Moreover, our services is recognized for delivering exceptional audit reports. We offer a comprehensive suite of professional auditing and accounting services tailored to diverse business clients.