Thu 31-12-2020 18:30 PM
ABU DHABI, 31st December, 2020 (WAM) -- The Ministry of Finance (MoF) has announced the extension of the deadline for submitting Economic Substance Regulations (ESR)’s notifications and reports today.
All companies in the UAE that engage in any of the ESR's relevant activities must submit an annual ESR notification to its Regulatory Authority no later than January 31, 2021 - in order not to be subject to administrative penalties.
All companies that fall under this decision are required to register an account in the ministry to access the ESR Portal to submit reports, notifications and supporting documents electronically no later than January 31, 2021 – as no further extension will be given to delinquent companies.
MoF began receiving ESR notifications and reports through the portal on December 1, 2020.
Younis Haji Al Khoori, Undersecretary of MoF, noted that the extension came within MoF’s endeavour to support the business sectors and companies affected by the COVID-19 pandemic.
Al Khoori said: "The Ministry of Finance has exceptionally extended the deadline for companies to submit their notifications and reports for the fiscal year 2019 until the end of January 2021. The extension is part of MoF’s endeavour to simplify procedures and enable business sectors to meet the requirements in a timely manner, in order to avoid any delay penalties."
The ESR Portal is a secure platform for companies to provide information about their activities in the UAE. The information that will be collected through the portal will help the Federal Tax Authority determine whether the companies are carrying out sufficient and appropriate ESR activities in the UAE."
MoF had recently held virtual seminars on the ESR Portal, where more than 5,000 companies participated. The seminars sought to ensure that companies understand how to use the portal and submit the required files on time to avoid penalties.