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We approach each audit with sharp thought, straight talk and common sense. In addition to verifying that financial results are fairly presented and meet...
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In-Country Value (ICV)
ICV certification guidance from Grant Thornton UAE—your partner in compliance, competitiveness and growth.
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Financial Reporting Advisory Services (FRAS)
Our team provides timely advice on the impact of accounting changes to assist businesses in the development of an appropriate implementation roadmap.
As your business grows, our advisory services are designed to help you achieve your goals. Successful growth often means navigating a complex array of...
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Consulting services
Unlock growth, drive transformation, and deliver measurable results. At Grant Thornton UAE, our consulting team partners with you to solve your most complex business challenges. We combine deep technical expertise, global frameworks, and local market insight to help you achieve sustainable growth and operational excellence.
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Business risk services
We assist in addressing risk in both proactive and responsive contexts. Our team can help you achieve the best balance between minimizing risk exposure, optimizing profitability and developing compliance review checklists. We deploy our diverse pool of controls professionals, compliance specialists, security professionals, and risk consultants to meet complex requirements.
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Regulatory Advisory Services
Grant Thornton UAE's extensive understanding of the overarching supervisory framework within the region equips our professionals to support financial institutions comply and abide by the set of regulatory mandates throughout the rapidly evolving ecosystem.
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Financial advisory
Grant Thornton UAE works with organisations on transactions from start to finish, assisting with strategy, identifying risks, executing deals, and helping to unlock their potential for growth and value creation.
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Technology Advisory & Cybersecurity
IT and technology are fundamental to drive the performance of businesses. Through leveraging the power of technology, Grant Thornton UAE helps organisations define and identify growth opportunities to achieve value-driven transformation and innovation.
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Forensics
Fraud and corruption pose a growing challenge worldwide. As the commercial landscape changes, an increasingly regulated environment requires stringent governance and compliance processes. Grant Thornton UAE helps organisations navigate challenges and crisis with a hands-on approach coupled with the use of technology.
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ESG Services
The Environment, Social and Governance (ESG) agenda has gained significant traction over the years, to become one of the key strategic aspects of any business. It is imperative that all organisations, irrespective of industry sector, engage with their stakeholders and prioritise ESG practices to unlock sustainable growth opportunities.
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Business Process Solutions
Our team at Grant Thornton offers comprehensive and cost effective outsourced solutions, enabling stakeholders and business owners to focus on their core business goals.
Tax policy reforms and the introduction of new tax regulations across the GCC are creating huge challenges for organisations. Grant Thornton UAE offers a...
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Corporate Tax
Our diversified team of corporate tax subject matter experts combines a perfect blend of international experience across several industry sectors, technical expertise, and commercial nuances with a commitment to deliver exceptional value to your business.
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VAT
The VAT team at Grant Thornton is well versed with the VAT Laws applicable across the region and holds valuable experience and professional accreditation in assisting clients across diverse industries to comply with the VAT obligations.
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Transfer Pricing
Grant Thornton UAE assists its clients in providing transfer pricing solutions that are implementable and operational, considering the facts and concerns of its clients.
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International Tax and Tax Due Diligence
Grant Thornton UAE supports multinational groups to optimise their tax structures. We can also assist businesses in analysing existing group transactions and inter-group supplies, as well as advising on potential implications of various taxes to facilitate an efficient Group tax structure.
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Economic Substance Requirements
Economic Substance rules were introduced in the UAE in 2019, requiring UAE businesses that undertake certain ‘Relevant Activities’ to maintain and demonstrate adequate substance.
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Customs and International Trade
The team at Grant Thornton is positioned centrally to assist the businesses with global cross-border tax structuring, planning and compliance needs.
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Excise Tax
We provide Excise Tax related advisory and compliance services to the producer, importer, and the storekeeper of excisable goods
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TAX
Economic Substance Requirements in the UAE
28 Apr 2020Economic Substance Notification Filing
Following the introduction of the Economic Substance Regulations (“ESR”) in the United Arab Emirates (“UAE”), all Licensees are required to submit an annual notification to their respective Regulatory Authority (trade license issuing authority).
The notification should be filed in the form approved by the Regulatory Authority and would contain the following information:
- Confirmation on whether or not the Licensee is carrying on a Relevant Activity
- If the Licensee is carrying on a Relevant Activity, confirmation on whether or not all or any part of the Licensee’s gross income in relation to the Relevant Activity is subject to tax in a jurisdiction outside the UAE
- The date of the end of the Licensee’s Financial Year (Accounting Reference Period)
The latest developments with respect to ESR Notification deadlines announced by the respective Regulatory Authorities, including the free zones are outlined below.
ESR Notification deadlines
Ajman Free Zone (AFZ)
- Notification Deadline: The notification deadline for Licensees registered at AFZ is 30 June 2020.
- Guidance for Filing: Available
Abu Dhabi Global Market (ADGM)
- Notification Deadline: The new notification deadline for Licensees registered in ADGM is 30 June 2020.
- Guidance for Filing: Available
*Dubai Airport Freezone Authority (DAFZA)[1]
- Notification Deadline: The notification deadline for Licensees registered at DAFZA has been extended until 31 May 2020. (previously 3 May 2020)
- Guidance for Filing: Available
Dubai International Financial Centre (DIFC)
- Notification Deadline: The notification deadline for Licensees registered in DIFC is 12 June 2020. The substance notification is expected to be released by 1 May 2020.
- Guidance for Filing: Available on the DIFC website.
Dubai Multi Commodities Centre (DMCC)
- Notification Deadline: The notification deadline for all Licensees registered at DMCC is 30 June 2020.
- Guidance for Filing: Guidance on the filing process is expected during April 2020
Dubai Silicon Oasis Authority (DSO)
- Notification Deadline: The notification deadline for Licensees registered at DSO was 31 March 2020. Guidance on the filing process is available.
- Guidance for Filing: Available
*Hamriyah Free Zone Authority (HFZA)
- Notification Deadline: The notification deadline for Licensees registered in HFZA was 30 June 2020.
*Ras Al Khaimah International Corporate Centre (RAKICC)[2]
- Notification Deadline: The notification deadline for Licensees registered at RAKICC will be 30 June 2020.
- Guidance for Filing: Available
Sharjah Airport International Free Zone (SAIF Zone)
- Notification Deadline: The notification deadline for Licensees registered at in SAIF Zone will be 30 June 2020.
Other Regulatory Authorities (e.g. Jebel Ali Free Zone, etc.)
- Notification Deadline: Other regulatory authorities are yet to declare their notification deadline. However, in line with above regulatory authorities it would be prudent to assume that the deadline for other regulatory authorities shall be no later than 30 June 2020.
*Deadlines updated 6 May 2020
Please note it is important to analyse and conduct an impact assessment of business activities in order to determine whether the business falls under the remit of ESR in the UAE.
Penalties for Non-Compliance
Failure to comply with the ESR (including providing inaccurate or incomplete information) may result in fine of between AED 10,000 and AED 50,000 in any fiscal year. The fines increase to between AED 50,000 and AED 300,000 for the subsequent fiscal year.
How GT can assist:
In this regard, the tax team at GT is extending its support to all businesses in conducting:
- Economic Substance Impact Assessment for UAE entities
- Assistance in filing Economic Substance notification
- Assistance in filing Economic Substance Return/ Report
For further clarification and details regarding the above Tax Alert, please feel free to contact Steve Kitching, Tax Partner, Steven Ireland, Tax Director, and Amisha Anil, Tax Assistant Manager.
[1] For complete overview on the DAFZA circular, please refer to Grant Thornton’s Tax Alert dated 13 April 2020.
[2] See Grant Thornton’s Tax Alert dated 26 March 2020 for further details.