MBG Middle East News

DAFZA Economic Substance Return Notification Form deadline & FTA ease Excise Tax return filing and tax payments

April 13, 2020

DAFZA Economic Substance Return Notification Form deadline

DAFZA announces the deadline for filing “Economic Substance Return Notification Form”. Dubai Airport Free Zone Authority (“DAFZA”) has made an official announcement on 09/04/2020 for DAFZA companies and branches to submit “ESR Notification Form” by 3 rd May 2020. The ESR Notification form could be submitted through the online customer portal of DAFZA website.

DAFZA further stated that DAFZA companies and branches will need to complete and submit an Economic Substance Return later in the year however there has been no announcement on the exact date and the method of submission.

UAE: Federal Tax Authority (FTA)-Tax relief measures in response to coronavirus (COVID-19).
The Federal Tax Authority (FTA) of UAE announced measures targeted specifically to provide relief for taxpayers by easing Excise Tax return filing and tax payment requirements for a limited time in response to the coronavirus (COVID-19) pandemic.

The Federal Tax Authority (FTA) of UAE introduced a general extension of one month for filing Excise Tax Returns and payment the related tax for registered taxpayers. The Federal Tax Authority has decided to extend the tax period for businesses registered for Excise Tax, which commenced on 1/3/2020 for one month on an exceptional basis, to end on 30/4/2020. The tax period shall now cover the months of March 2020 and April 2020.

Excise Tax Registrants must fulfil the following obligations:

  • File two separate tax returns, one for March 2020 and one for April 2020, no later than Sunday, May 17, 2020.
  • Ensure that the FTA has received the tax payable for the tax period as reported in the March 2020 and April 2020 tax returns no later than Sunday, May 17, 2020.

Getting more time to pay your tax could be a lifeline if your income is sluggish right now and you’re worried about making ends meet. But if you think you’re due a refund from the Federal Tax Authority, then waiting until May to submit your return is a bad idea. In fact, if you’re sure you’re eligible for Excise refund, you should actually file as soon as possible to get that cash back into your pocket sooner.

MBG will assess the business activities of the companies to determine whether the activities are relevant activity under Economic Substance Regulation and assist in preparation and/reviewing and filing of the ESR Notification Form with Dubai Airport Free Zone Authority.

For your Excise requirements MBG can support your organisation with excise tax compliance & tax planning strategies that form part of our Taxation Advisory Division covering VAT, Excise & Customs.

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