DAFZA has declared the due date for filing Economic Substance Notification. As per notification all the license in DAFZA has to file Economic Substance Notification on or before May 03 2020.
If any company fails to submit the Economic Substance Notification on or before May 03 then the company can face penalty of AED 10,000 to 50,000 AED for first year and 50,000 AED to 300,000 AED as per article 11 of cabinet resolution no.31 of 2019
Notification Is applicable For Following Sectors
- Banking Businesses
- Insurance Businesses
- Investment Fund Management Businesses
- Lease-Finance Businesses
- Headquarters Businesses
- Shipping Businesses
- Holding Company Businesses
- Intellectual Property Businesses
- Distribution and Service Centers Businesses
The above entities should notify the DAFZA authority that these businesses are carried out and this will be decided from the license itself. DAFZA is not responsible for the assessment also if the company is carrying out above relevant activities and is not listed in the license has to notify the DAFZA Authority. The regulation is applicable even if there is no Revenue earned or business carried out
Things To be Listed In Notification
As per the circular following, details are required to fill
- Licensee’s financial year-end;
- Licensee exercises a Relevant Activity;
- Licensee earned any income from the Relevant Activity;
- Any income generated by the Relevant Activity is totally or partially subject to a tax system outside of the UAE
- Is the Licensee is exempt due to Government ownership?
What Ads Auditors Can Help You With
Ads auditors have an expert team to help you with Economic Substance Regulation. We will conduct the following steps and approach:
- Study your business activity and find the accessibility of the Economic Substance Regulation. Also helping you with filing Economic Substance Regulation with authority
- To provide the guidance and support for compliance with the provisions of the Economic Substance Regulation, if your activity is falling under the regulation. To conduct Impact Study and Gap Analysis in order to assess whether the Business meets the Compliance test and to provide the recommendations.
- Reporting with Regulatory Authority on or before the Due Date.
For Any Enquiry Or Help You Can Reach Out To:
Dakshay Balachandran
CWA,CFE
Managing Director
+971504740300
