#esr filing uae

[amaaudit]

Attention Businesses: ESR Filing Deadline for FY 2023 Approaching (March 31st, 2024)! ⏰

Don't risk a penalty! Ensure your Economic Substance Regulations (ESR) Report for the Financial Year ended March 31st, 2023 is submitted on time. Avoid a hefty AED 50,000 penalty by acting now.

We can help you:

Navigate complex ESR compliance requirements.

Prepare and file your ESR Report accurately and efficiently.

Ensure peace of mind by avoiding penalties for late or non-filing.

Don't wait until the last minute! Contact AMA Audit Tax Advisory today for expert ESR filing assistance.

[vatfirmsindubai]

Auditing – Trends & Challenges

With a global pandemic upon us, organizations were faced with unprecedented uncertainty, and with a need to inculcate a rapid pace of change. While organizations were seeing this change – auditors were learning and implementing the changes to ensure efficient growth of the organization.

Let’s go through some of the trends and challenges that the audit firms in UAE might witness in 2022:

Audit Strategies will have to be changed, to ensure they seem relevant and useful. In the last 2 years, it was all about building resilience within the organizations. In 2022, it will be all about ensuring visible impact in the audit services – by taking on a dynamic approach to auditing – the focus will be on bringing short and collaborative resolutions. Therefore, internal audit firms in Dubai will look at building audit strategies that show the impact of audit and the value it can provide to any organization.

The focus in 2022 will be more on ensuring compliance with regulations and procedures. While auditors will investigate the past and reflect on the present – it will be more about out-of-the-box thinking, with emphasis on the future, and implementing the changes and approaches in business.

As newer risks emerge, 2022 will be all about efficiently managing the rapid and dramatic changes in the business lifecycle. Internal Audit Firms in Dubai will have to plan and account for unaccounted risks, and the way to manage these risks, that are going to arrive through the year.

Risk Management Frameworks to outline the risks, scope, criteria will have to be managed. Characterizing risk standards & models going ahead will require a more engaged and cooperative methodology. In the previous year, associations have connected with general medical care trained professionals and doctors to obviously comprehend wellbeing chances. The pandemic uncovered a few regions wherein associations need better cooperation, for example, understanding supply chains, strategic relations, and, as a rule, the effect of efficient failures of various enterprises, just as accessing various specialists in a wide scope of industries.

Are you ready to embrace the change? To know more about how audit firms in the UAE can assist you, reach out to TRC Pamco, one of the leading and experienced audit and consulting firms in the UAE.

[minnaahblogs]

The Importance of an Accounting Firm in Running a Business in Abu Dhabi

Running a business in Abu Dhabi, one of the most dynamic and rapidly growing cities in the Middle East, presents unique opportunities and challenges. As the capital of the United Arab Emirates, Abu Dhabi boasts a robust economy, diverse market, and a supportive business environment. However, navigating the complexities of financial management, regulatory compliance, and strategic planning can be daunting this is where you need to find the best accounting firm in Abudhabi. This is where an accounting firm becomes an invaluable partner. Here’s why engaging an accounting firm is crucial for running a successful business in Abu Dhabi.

Navigating Complex Regulatory Requirements

Abu Dhabi, like the rest of the UAE, has specific regulatory and compliance requirements that businesses must adhere to. These include:

VAT Compliance: Value Added Tax (VAT) was introduced in the UAE in 2018. Ensuring proper VAT registration, filing, and compliance is essential to avoid penalties.

Economic Substance Regulations (ESR): Businesses must comply with ESR requirements, which necessitate demonstrating substantial economic presence in the UAE.

Anti-Money Laundering (AML) Laws: Businesses must adhere to strict AML laws, requiring thorough record-keeping and reporting.

Corporate Governance: Proper corporate governance practices are vital to maintain transparency and build investor confidence.

An accounting firm specializing in UAE regulations ensures your business stays compliant with these requirements, avoiding costly penalties and legal issues.

Financial Management and Reporting

Effective financial management is the backbone of any successful business. An accounting firm provides comprehensive financial services, including:

Bookkeeping: Accurate and timely recording of financial transactions is crucial for maintaining clear financial records.

Financial Reporting: Regular financial statements and reports provide insights into your business's performance and financial health.

Budgeting and Forecasting: Developing realistic budgets and financial forecasts helps in strategic planning and resource allocation.

Cash Flow Management: Efficient cash flow management ensures your business has sufficient liquidity to meet its obligations and invest in growth opportunities.

An accounting firm’s expertise in financial management helps you make informed decisions, optimize costs, and maximize profitability.

Strategic Planning and Business Advisory

Beyond traditional accounting services, many firms offer strategic planning and business advisory services. These include:

Business Valuation: Assessing the value of your business for mergers, acquisitions, or investment purposes.

Risk Management: Identifying and mitigating financial risks to safeguard your business.

Tax Planning and Optimization: Strategic tax planning to minimize liabilities and maximize tax benefits.

Growth Strategies: Advising on expansion strategies, market entry, and investment opportunities.

Partnering with an accounting firm provides access to experienced advisors who can guide your business through growth and expansion phases.

Enhancing Operational Efficiency

An accounting firm can help streamline your business operations by:

Implementing Accounting Software: Utilizing advanced accounting software to automate and streamline financial processes.

Internal Controls: Establishing robust internal controls to prevent fraud and ensure accuracy in financial reporting.

Process Optimization: Identifying inefficiencies in your business processes and recommending improvements.

Payroll Management: Efficiently managing payroll processes to ensure timely and accurate employee compensation.

Improving operational efficiency leads to cost savings, better resource utilization, and enhanced productivity.

Ensuring Financial Transparency and Credibility

Transparency in financial reporting is essential for building trust with stakeholders, including investors, creditors, and regulatory authorities. An accounting firm ensures that your financial statements are accurate, transparent, and compliant with international accounting standards. This credibility is crucial for:

Investor Confidence: Transparent financial reporting attracts investors and enhances their confidence in your business.

Banking Relationships: Accurate financial statements are essential for securing loans and credit facilities from banks.

Regulatory Compliance: Transparent financial reporting ensures compliance with regulatory requirements and audits.

Market Reputation: A reputation for financial transparency enhances your business’s credibility and market standing.

Conclusion

In the vibrant and competitive business landscape of Abu Dhabi, partnering with an accounting firm is not just an option but a necessity. From navigating complex regulations to optimizing financial management and enhancing operational efficiency, an accounting firm plays a pivotal role in ensuring your business’s success. By providing expert guidance, strategic insights, and ensuring financial transparency, an accounting firm empowers you to focus on your core business activities and achieve your growth objectives.

Investing in the services of a reputable accounting firm is an investment in your business’s future. Make the smart choice today and secure your business’s financial health and long-term success in Abu Dhabi’s thriving market.

[thebroadspectrum]

Navigating ESR Notifications and Reports in UAE: Essential Insights from Top Consultants

The UAE's Economic Substance Regulations (ESR) have been a game-changer for businesses operating within the region. Introduced to align with international tax standards and combat profit shifting, ESR requires entities to demonstrate substantial economic activities in the UAE. Complying with ESR involves understanding the intricacies of ESR notifications and reports, a process where consultants in UAE play an indispensable role. This article explores the significance of ESR compliance and how expert consultants facilitate this journey for businesses.

Click https://highmarkaccountants.com/compliance/ers-notification-and-reports-services-in-uae/

The Essence of Economic Substance Regulations

The UAE's ESR was implemented in 2019 in response to global tax concerns, particularly those raised by the European Union and the OECD. The regulations target specific categories of business activities, including banking, insurance, investment fund management, lease-finance, headquarters operations, shipping, holding companies, intellectual property businesses, and distribution and service centers.

Entities engaged in these activities must meet economic substance requirements, which involve demonstrating real economic presence and substantial activities within the UAE.

ESR Notifications and Reports: A Step-by-Step Guide

ESR Notifications

The first step in ESR compliance is submitting an ESR notification. This notification must be filed annually and provides basic information about the entity and its activities. Here’s what businesses need to know:

Eligibility: Identify whether your business conducts relevant activities under the ESR. All entities, including mainland, free zone, and offshore companies, must file a notification if they engage in these activities.

Details Required: Notifications require details such as the entity’s activities, financial year, and whether it has earned income from relevant activities.

Deadline: Notifications must be submitted within six months from the end of the financial year.

ESR Reports

Entities that earn income from relevant activities must also submit an ESR report. This report demonstrates compliance with the economic substance requirements and includes detailed information on:

Core Income-Generating Activities (CIGA): Evidence that the CIGA were conducted within the UAE.

Management and Direction: Proof that the entity is directed and managed in the UAE.

Employees, Expenditure, and Physical Assets: Details about the employees, operating expenditure, and physical assets within the UAE.

Financial Information: Comprehensive financial data supporting the entity’s economic activities.

The Role of Consultants in ESR Compliance

Given the complexity and high stakes of ESR compliance, businesses often turn to consultants in UAE for expert guidance. These professionals offer a range of services to ensure seamless compliance with ESR requirements.

Expertise and Knowledge

Consultants possess deep knowledge of the ESR framework and stay updated with any amendments. They provide accurate interpretations of the regulations, helping businesses understand their obligations and avoid costly mistakes.

Tailored Compliance Strategies

Each business is unique, and so are its compliance needs. Consultants assess an entity’s specific situation and develop tailored strategies to meet ESR requirements. This might involve restructuring operations, relocating key personnel, or enhancing documentation processes.

Efficient Reporting and Documentation

Preparing ESR notifications and reports requires meticulous attention to detail. Consultants assist in gathering and organizing the necessary data, ensuring that all submissions are accurate, comprehensive, and timely.

Risk Mitigation

Non-compliance with ESR can result in severe penalties, including financial fines and reputational damage. Consultants help businesses identify potential compliance risks and implement measures to mitigate them, safeguarding the entity’s interests.

Case Study: Successful ESR Compliance Through Expert Consultancy

Consider a medium-sized tech company in Dubai engaged in intellectual property activities. Faced with the challenge of complying with ESR, the company enlisted the services of a reputable consultancy firm. The consultants conducted a thorough assessment, identifying gaps in the company's current operations that needed addressing.

The consultancy provided strategic recommendations, such as enhancing local operational activities, improving management practices within the UAE, and ensuring robust documentation of all economic activities. They also assisted in preparing the ESR notification and report, ensuring timely and accurate submissions.

As a result, the tech company successfully demonstrated compliance with the ESR, avoiding penalties and maintaining its favorable tax position.

The Future of ESR Compliance in UAE

As global tax regulations evolve, the UAE’s commitment to upholding international standards through ESR is expected to continue. Businesses must remain proactive and informed to navigate these changes effectively.

Conclusion

The Economic Substance Regulations in the UAE underscore the importance of substantial economic activities and transparency. Complying with ESR notifications and reports is critical for businesses to maintain their operations and reputation in the region. Leveraging the expertise of consultants in UAE can make this complex process manageable and efficient.

By understanding the ESR requirements and seeking professional guidance, businesses can ensure compliance, mitigate risks, and thrive in the UAE's dynamic economic landscape. Whether you're a multinational corporation or a local enterprise, staying ahead of regulatory requirements is key to sustained success.

Click for accounting services in Dubai https://highmarkaccountants.com/

[yourofficepartners]

Business Setup Consultants in Dubai

It’s time for Economic Substance Regulation (ESR) notification submission:

Companies and establishments that are involved in ‘relevant activities’ in the UAE are required to submit economic substance notifications and reports to the regulatory authority on an annual basis, in accordance with the provisions of the Cabinet Resolution, which stipulates the submission of these notifications and reports. Failure to adhere to this will result in sanctions.

𝐍𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 – 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞 • A maximum period of 6 months is granted from the end of the fiscal year.

𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐒𝐮𝐛𝐬𝐭𝐚𝐧𝐜𝐞 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 – 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞 • A maximum period of 12 months is granted from the end of the fiscal year.

𝐑𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐢𝐞𝐬: • Banking Business • Insurance Business • Investment Fund management Business • Lease – Finance Business • Headquarters Business • Shipping Business • Holding Company Business • Intellectual property Business (“IP”) • Distribution and Service Center Business

All legal entities are encouraged to determine their upcoming ESR filing obligations as soon as possible for any completed FYs and take necessary steps to ensure filings are made within the applicable deadlines and all necessary supporting documentation is available at the time of the filing.

Penalties for noncompliance with the ESR include financial penalties for the failure to submit a notification (AED 20,000), submit a report (AED 50,000), provide accurate or complete information (AED 50,000), and demonstrate sufficient economic substance in the UAE (first failure is AED 50,000 and second consecutive instance of failure is AED 400,000). Nonfinancial penalties include information exchanges with certain foreign authorities. The Federal Tax Authority (FTA) has begun to initiate audits.

Our expert team is ready to assist you with ESR preparation and submission.

FN Year Jan 2023 to Dec 2023 - Notification Filing Deadline is 30th June 2024 FN Year Jan 2023 to Dec 2023 - Report Filing Deadline is 31st December 2024

Please contact Your Office Partners for more info!

[kgrndeveloper]

Economic Substance Test UAE

The Economic Substance Test implemented by Economic Substance Regulation UAE helped bring more accountability to the taxation infrastructure in the UAE. It helped the country get off the EU’s tax Blacklist, and improve its credibility in the international market. ESR Notification UAE comes with two broad filing requirements that encourage companies to maintain an appropriate economic presence in the UAE. The Economic Substance Test is a part of these compliance formalities, and all eligible companies have to ensure they meet these requirements to stay on the right side of the law. In this article, we will take a look at the Economic Substance Regulations UAE Notification, and why it is so important. 

[services560]

ESR in UAE | Economic Substance Regulations | ESR Filing UAE

[kgrnaudit]

Penalties for Failure to Comply with ESR in UAE

Administrative fines were established for a number of Economic Substance Regulations violations by Cabinet Resolution No. 57 of 2020. (ESR). The revised resolution has increased the number of fines for violations committed by both Licensees and Exempted Licensees. Giving incorrect information, failing to submit an ESR report and notification, and failing the UAE's economic substance test are the three main violations.

The severity of the fine serves as a reminder to businesses to consult qualified ESR experts in the UAE before submitting notices and ESR Reports. Businesses should be cautioned by the following list of administrative fines under the Economic Substance Regulations:

Criminal penalties and fines for not informing A Licensee or Exempted Licensee who fails to file an Economic substance regulations notification in the UAE is subject to pay an administrative penalty of AED 20,000, per Article 13 of Cabinet Resolution No. 57 of 2020 addressing economic substance requirements. If the National Assessing Authority concludes that the entity has committed the violation, it will inform the entity of the penalty.

Call +971 45 570 204 or send an email to support@kgrnaudit.com with any questions.

Penalties will apply if an economic substance report is not submitted. In accordance with Article 14 of Cabinet Resolution No. 57 of 2020, entities that fail to submit the Economic Substance Regulations Report and any relevant information or documentation required to be submitted in accordance with the provisions of the Cabinet Resolution No. 57 of 2020 concerning Economic Substance Requirements will be subject to an administrative fine of AED 50,000.

According to Article 14 of Cabinet Resolution No. 57 of 2020, a corporation will be subject to an administrative fine of AED 400,000 if it violates the same law in the fiscal year that immediately follows the fiscal year in which the violation was initially committed. To avoid further financial loss in the form of penalties, it is preferable to seek the advice of the top ESR specialists in Dubai.

Penalties May Apply If You Fail the Economic Substance Test To engage in a Relevant Activity, companies based in the UAE must pass the Economic Substance Test. But for the first year, failing the Economic Substance Test for each financial year will result in a punishment of AED 50,000, as stated in Article 14 of Cabinet Resolution No. 57 of 2020. A repeat of the same violation in the subsequent Financial Year, however, will result in an administrative punishment of AED 400,000, in accordance with Article 14 of Cabinet Resolution No. 57 of 2020.

Call +971 45 570 204 or send an email to support@kgrnaudit.com with any questions.

Financial penalty for providing misleading information The Regulatory Authority should receive correct information and pertinent documentation from both Licensees and Exempted Licensees. Organizations that submit fraudulent information and fail to acknowledge the inaccuracy despite knowing about it will be penalised AED 50,000, according to Article 15 of Cabinet Resolution No. 57 of 2020. The National Assessing Authority will inform the entities of the fine as soon as it becomes aware of the violation.

Contents of the penalty notification After the National Assessing Authority determines that a Licensee or Exempted Licensee has violated an ESR rule, a notice will be issued to the violators. The Authority will give violators the following information:

The Licensee or the Exempted Licensee breached the law in the applicable financial year, according to the National Assessing Authority. the grounds for imposing the ESR administrative penalty The financial penalty assessed administratively against the company The administrative penalty's start date ( not less than 30 business days after the issue of notice) The ability to contest an administrative penalty According to Article 17 of the Cabinet Resolution 57 of 2020, a Licensee or an Exempted Licensee may challenge the administrative penalty imposed by the National Assessing Authority. Call +971 45 570 204 or send an email to support@kgrnaudit.com with any questions.

The following justifications are permissible for the appeal:

The company has not broken the law. The fine imposed is excessive given the offence The Authority will be penalised more severely than what is allowed by the Resolution. The National Assessing Authority will release a ruling outlining the procedure for submitting an appeal against Economic Substance Regulations fines in the UAE. The resolution will specify the steps for filing an appeal, as well as further measures for examining a penalty and deciding whether to file an appeal.

What Can KGRN Do to Help You Avoid ESR Sanctions? Businesses that come under the licensee and exempt licensee categories should exercise caution because to the harsh administrative penalties connected to the UAE's Economic Substance Regulation. Failure to submit an ESR notification or report, failing the Economic Substance Test, and submitting false information are the principal violations that result in fines under ESR in the UAE.

Given the severity of the penalty, businesses should try to avoid penalties in the first place rather than submitting an appeal after they have been imposed. Consultation with leading ESR authorities in the UAE, like as KGRN Chartered Accountants, is your best bet for avoiding fines.

The highly qualified auditors and business setup specialists that KGRN hires are familiar with the ESR laws. In order to comply with the Economic Substance Regulation UAE and avoid fines and other sanctions, KGRN assists enterprises. In order to help enterprises, KGRN evaluates whether they can pass the UAE Economic Substance Test, provides recommendations if they can't, and helps them submit their annual ESR Notification and ESR Reports appropriately.

[tech-blog987]

THE ESR FILING DEADLINES ARE HERE. HAVE YOU FILED IT YET? — HALLMARK AUDITORS

The ESR is an essential element of the UAE`s enterprise rules and sits inside a cross-border global tax framework. The ESR changed into first issued in April 2019 and eventually carried out after a sequence of amendments and steerage with the primary batch of filings on 31 December 2020.

Businesses with a economic yr of 31 March 2021 are reminded that the due date for the ESR reporting is 31 March 2022 in the event that they executed a Relevant Activity at some point of the economic yr. The ESR record is needed if the enterprise is incomes profits from the Relevant interest stated and isn’t eligible to say an exemption below ESR.

Filing closing dates were currently prolonged. ESR notification and reporting are separate filings and is an annual responsibility for licensees withinside the scope of ESR. Failure to finish and post the Notification might also additionally bring about consequences as in line with ESR laws. That might entice consequences starting from AED 20,000- AED 400,000. Considering that is the second one yr of submitting, the better penalty of AED 400,000 shall follow for a put off in submitting the ESR record if the enterprise changed into now no longer compliant withinside the preceding yr.

The ESR regulation mandates that the businesses withinside the UAE want to have an good enough financial substance withinside the UAE with regards to the subsequent nine applicable sports

Banking Businesses

Insurance Businesses

Investment Fund Management Businesses

Lease-Finance Businesses

Headquarters Businesses

Shipping Businesses

Holding Company Businesses

Intellectual Property Businesses

Distribution and Service Centre Businesses (Purchasing from Foreign related persons/ Providing offerings to Foreign related persons)

Following are the due dates for the Company having a economic yr as below:

Financial Year Ending On Notification Due Date Return Due Date

31 Mar 2021 30 Sep 2021 31 Mar 2022

30 Sep 2021 31 Mar 2022 30 Sep 2022

Please word consequences for non-compliance might entice:

Non-Compliance Amended Penalty Amount AED

Failure to post a Notification 20,000

Failure to post an Economic Substance Report 50,000

Providing faulty records 50,000

Failure to byskip ES Test for first yr 50,000

Failure to byskip ES Test for the consecutive yr 400,000

If you’ve got got ignored submitting the ESR notification on time, we endorse that the notification need to be filed on the earliest to keep away from any put off in ESR reporting. Businesses need to report as quickly as viable and now no longer wait till the stop of the prolonged cut-off date to keep away from any sort of penalty. Also, the submitting need to be achieved accurately.

Given the global nature of ESR, and the opportunity of UAE government having to deliver the agency`s UAE Substance take a look at failure to tax government remote places, the consequences aren’t constrained in the UAE by myself however can also have an effect on the agency remote places as well.

At Hallmark, we’ve a crew of specialists to manual you via the complete method of ESR submitting. So, whether or not your cut-off date is approaching, otherwise you want to study greater approximately ESR, get in contact with us.

For any Corporate Services Assistance, hook up with us.

[vatfirmsindubai]

VAT Return Filing in UAE: A Detailed Guide

What is VAT Return?

The VAT (Value Added Tax) return is the summary of all the purchases and supplies (goods or services) made by VAT-registered businesses/taxable individuals for a particular tax period. This summary, including the details of the tax imposed at every stage of sale/purchase, reflects the tax liability of the taxable persons – which is to be submitted to the Federal Tax Authority (FTA).

Want a seamless VAT return filing in Dubai? Get professional assistance in achieving UAE VAT compliance from experts at TRC Pamco.

VAT Filing in UAE – The Complete Procedure

Open E-Services Portal

Firstly, go to the FTA e-services portal. Log in with your VAT account’s credentials to access the dashboard which will show the basic details of your tax registration, currently active and associated with the FTA.

Click VAT Tab

In the navigation bar (placed on the uppermost part of the screen), click the VAT tab and from the dropdown menu, select ‘VAT 201 – VAT Returns’. Now, click on the ‘VAT 201 – New VAT Return’ to start the procedure.

Enter Information

Here, a few details of the taxable person like name, tax registration number, etc. will have to be filled in.

Mentioning VAT Sales and Expenses

For the current tax period, all the relevant details of VAT sales and expenses – like the zero-rated supplies, exempt supplies, etc. – have to be submitted. Also, all the expenses bearing the current VAT rate of 5% are to be submitted.

Due Net VAT Calculations

The taxable person’s net VAT due calculations have to be shown here. For the due amount that is higher than the recoverable amount, the tax authority is to be paid. If vice versa, a VAT refund can be claimed.

Declaration

Through the ‘Declaration and Authorized Signatory’ portion, you declare the accuracy and correctness of all the information provided to the Federal Tax Authority.

Through the above-mentioned process, you/your expert tax consultant can carry out the VAT filing in UAE.

[economicsubstanceregulations]

The main aim of filing the ESR notification is to let the regulatory authorities collect and govern some significant pieces of information about the licensees and the relevant activities that they have been performing throughout the year.