Who
• Liscensee understanding Relevant Activity during a financial year is required to file an annual notification.
When
• Compliance requirement under the Economic Substance Regulations ('ESR') is annual in nature.
• The second notification for financial year ending December 31, 2020, is due by June 30, 2021.
Common Issues
• Determination of appropriate relevant activity.
• Duplication of releveant activity.
• Not maintaining adequate documentation for board meeting in the UAE.
• Failure to fulfill the directed and managed test for branch of foreign company in the UAE.
• Some of the core income generating activities are performed overseas.
• Claiming an exemption from meeting the economic substance test.
• Calculating the income, expenses and tangible assets attributable to the relevant activity.
