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Economic Substance Report

Why do you need an ESR?

If your company operates in the United Arab Emirates (UAE) and engages in relevant activities, you must be familiar with the Economic Substance Report (ESR) requirements. The ESR is a crucial compliance measure introduced by the UAE to align with international standards and promote tax transparency. At MS Plus Management Consulting, we are here to guide you through the complexities of the ESR, ensuring that you meet all the obligations and maintain your business’s good standing.

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What is the Economic Substance Report (ESR)?

The ESR is a regulatory framework introduced by the UAE to meet its commitment to the Organization for Economic Co-operation and Development (OECD) and the European Union (EU) under the Base Erosion and Profit Shifting (BEPS) initiative. The main objective of the ESR is to ensure that companies conducting certain “Relevant Activities” in the UAE have substantial economic presence and real economic activities within the country.

Who Needs to File the Economic Substance Report?

The ESR applies to companies engaged in specific “Relevant Activities,” including but not limited to:

  • Banking
  • Insurance
  • Investment fund management
  • Lease-finance
  • Headquarters
  • Shipping
  • Holding company
  • Intellectual property (IP) business
  • Distribution and service center business

If your company falls under any of these categories and generates income from these activities, it is likely subject to the ESR requirements.

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Compliance with the Economic Substance Report

At MS Plus Management Consulting, we understand that navigating the ESR compliance landscape can be challenging. Our team of experts specializes in helping businesses like yours meet the following ESR obligations:

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Notification Requirements

Companies engaged in Relevant Activities must submit an annual notification to the relevant regulatory authority, disclosing essential information about their activities and financial performance.

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Substance Requirements

Companies must demonstrate that they have adequate economic substance in the UAE by meeting certain criteria, such as having sufficient employees, physical assets, and operational expenses proportionate to their activities.

 

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Record Keeping

Maintaining accurate and up-to-date records is essential for ESR compliance. Our team can assist you in organizing and managing the necessary documentation to support your economic substance.

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Filing the Economic Substance Report

Companies subject to the ESR must submit an annual Economic Substance Report, detailing how they meet the substance requirements, to the regulatory authority.

Why Choose MS Plus Management Consulting for ESR Assistance?

Navigating the ESR requirements can be complex, and non-compliance may result in penalties, reputational damage, and potential business restrictions. Our team at MS Plus Management Consulting has extensive experience in guiding businesses through the ESR compliance process.

Here’s why we are the right partner for your ESR needs:

Expertise

Our experts stay up-to-date with the latest ESR regulations, ensuring that you receive accurate and reliable guidance.

Tailored Solutions

We understand that each business is unique, and our solutions are tailored to meet your specific requirements and objectives.

Timely Compliance

We ensure that all ESR obligations are met on time, giving you peace of mind and minimizing the risk of penalties.

Confidentiality

We treat all client information with the utmost confidentiality, ensuring that your sensitive data is secure.

Let Us Simplify Your ESR Compliance

At MS Plus Management Consulting, we are committed to supporting your business in meeting its ESR obligations efficiently and effectively. Whether you need assistance with ESR notification, record-keeping, or filing the Economic Substance Report, our team is here to help.

 Contact us today to schedule a consultation and discover how we can assist you in navigating the Economic Substance Report requirements in the UAE, ensuring your business remains compliant and successful in this dynamic economic landscape.

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