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Financial Reporting Advisory Services
Grant Thornton’s Financial Reporting Advisory Services (FRAS) team supports organisations through a diverse range of accounting and reporting services including transaction accounting, analysis and adoption of new International Financial Reporting Standards, training on new and complex standards, and other related services that enable organizations to achieve greater transparency and navigate through the ever-changing regulatory landscape.
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CFO Advisory Services
Chief Financial Officers (CFOs) and finance teams periodically face difficulties in financial reporting and accounting. To address these issues and challenges GT’s team looks to reduce the periodic uncertainty faced by our clients around difficult reporting and accounting standards and can help overcome these difficulties with our CFO advisory services.
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International Financial Reporting Standards
Capability in International Financial Reporting Standards (IFRS) is one of our core skills. We have access to a full-time team responsible for high quality, consistent application of IFRS throughout the global organisation.
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International Public Sector Accounting Standards
We are equally experienced in the adoption and implementation of International Public Sector Accounting Standards (IPSAS).
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In-Country Value
Grant Thornton is honored to be one of the Certifying Bodies to implement the National In-Country Value (ICV) Program for the Ministry of Industry and Advanced Technology (MoIAT)
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Staff Secondment Services
Finding qualified, skilled professionals for a specific purpose and time period can be a significant challenge for many organisations. We alleviate that challenge with a talent pool of highly motivated and technically trained individuals who have excellent soft skills and the agility to adapt quickly to varied client environments.
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Transformation Advisory
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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M&A and Transactions Advisory
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Forensics
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Restructuring
We have an established standard of excellence for Restructuring within the United Arab Emirates with a focus on client success throughout a complex period of the business life cycle.
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Incorporation and Compliance
Grant Thornton assists businesses in setting up and complying with these regulations and acts as adviser for companies to ensure their activities, policies and procedures follow the guidelines specified by respective regulations.
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ICFR
Grant Thornton is a market leader in providing Internal Controls over Financial Reporting (ICFR) services to many well-known entities in UAE.
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Islamic Finance
Grant Thornton's Islamic Financial Services team comprises a global network of professionals with in-depth knowledge of Islamic finance and providing practical, value added assistance to their clients across a range of specialisms and issues.
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Regulatory Compliance
Grant Thornton holds a proven track-record in Regulatory Compliance advisory, our range of services will facilitate robust guidance to help you manage your regulatory risks and affairs, our teams of specialists assist our clients in the following areas:
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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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Business Process Outsourcing Services
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 Alert - April 2021
25 Apr 2021Are you ready for the next Economic Substance Filing?
As you may be aware, the Economic Substance Regulations (ESR) is an annual compliance requirement in the UAE. For the financial year ended 31 December 2020 (FY20), UAE businesses are required to file their ES Notifications no later than 30 June 2021 through the Ministry of Finance (MoF) ESR Portal.
It is strongly recommended that UAE businesses periodically assess their business activities to report any change in Relevant Activities; and determine whether the business would be in-scope or exempted from Economic Substance (ES) Reporting for the relevant reporting year.
Backgound
The Economic Substance Regulations (ES”) was first introduced in the UAE in April 2019 through Cabinet Resolution No. 31 and was recently amended by Cabinet Decision No. 57, along with the updated guidance (Ministerial Decision No. 100 of 2020) in September 2020. The Amended ESR applies retrospectively from 1 January 2019. The ESR requires UAE onshore and free zone companies that carry out “Relevant Activities” to maintain and demonstrate an adequate “economic presence” in the UAE relative to the activities they undertake i.e. ES Test.
An annual ES Notification is required to be submitted by Licensees (including Exempted Licensees) within six months from the end of the relevant financial period. For entities that undertake a “Relevant Activity”, they will also be required to submit a full ES Report within 12 months from the end of their financial year.
Click here for our Tax Alert on Amended ESR in the UAE.
The first reporting year was FY19 where most UAE business have successfully submitted their ES Report on or before 31 December 2020. The deadline was later extended to 31 January 2021 to support the businesses that have been impacted by Covid-19.
The Federal Tax Authority has levied penalties to several Licensees for non-compliance with respect to FY19 ESR filing, including multiple submission and non-submission of ES Notifications and ES Reports. Licensees can file an appeal through the MoF ESR Portal on certain grounds i.e., (i) it did not commit a violation; (ii) the penalty imposed is not proportionate to the violation; and (iii) the administrative penalty imposed exceeds the limit prescribed.
Penalties
Failure to resubmit an ES Notification will result in fine of AED 20,000 and failure to comply with the ESR (including failure to file an ES Report, demonstrating economic substance and providing inaccurate or incomplete information) will result in fine of AED 50,000 in any fiscal year. The fines can reach up to AED 400,000 and can expose a UAE entity to spontaneous exchange of information with the Foreign Competent Authority, as well as other administrative sanctions such as the suspension, revocation or non-renewal of the entity’s trade license or permit.
Next Steps
Businesses are required to assess whether they fall within the remit of any Relevant Activity under the ESR and understand their filing obligations for each reporting year. For FY20, UAE businesses are required to file their ES Notifications by 30 June 2021 and ES Report (where applicable) by 31 December 2021.
Contact Us
Our tax team can support your businesses with:
- Economic Substance Impact Assessment
- Assistance in Filing Economic Substance Notification
- Assistance in Filing Economic Substance Report
- Assistance in Appeal Process
Get in touch with our team of experts, Steven Ireland, the UAE Head of International Tax, and Amisha Anil, our Tax Manager to further assist you on this matter.