Ministry of Finance (“MoF”) publishes Economic Substance Notification (“Notification”) and Economic Substance Report (“Report”) templates

In accordance with the Cabinet Ministers Regulation No. 57 of 2020 Concerning Economic Substance Regulation (“ESR”) the MoF has published the templates for Re-Notification and Report Filing on its website. The templates requires companies to provide details regarding Relevant Activity(s), Relevant Income, ESR Test parameters requirements. The key points covered in the templates includes the following:

ESR Notification

In comparison with the previous ESR Notification:
1. Consolidation of Branches, if conducting Relevant Activity(s) – the Parent Company is required to provide details of its branches.
2. Information on its Regulatory Authority.
3. Companies claiming Exempted Status under ESR Law must provide details of which category(s) does it fall under
4. Ownership information – Details of the Parent Company, Ultimate Parent Company and Ultimate Beneficial Owner.

ESR Report

1. Details of Company and whether it is registered for VAT, part of Multinational Group and whether wholly owned by UAE government.
2. ESR Registration Number.
3. Details of Branches.
4. Financial Information of the Company (e.g. Financial Statements and currency used for financial information)
5. Whether any updated information not present in the Notification
6. Details of Relevant Activity and State Income Core Generated Activity(s).
7. Ownership details similar to the Notification.
8. Economic Substance Test information e.g. Directed and Managed, Qualified Employees, Expenditure, Physical Assets and Outsourced activity (if applicable).

The MoF templates provides clear guidelines on what information to submit for Re-notification on MoF Portal once active as well as the points on submission of ESR Report. As per the guidelines, the ESR Report must be submitted by 30th December 2020 for all the Companies with a financial year end of 30th December 2019 along with all the supporting documents.

Role of MBG Corporate Services

MBG Corporate Services will assist Clients in filing of the ESR Notification, Re-notification and preparation and submission of Annual ESR Report with the relevant Regulatory Authority and MoF Portal as per the due deadline.