ES Notification
All ADGM and DIFC companies, partnerships and foundations ("Entities") that are within the scope of the Economic Substance Regulations ("ES Regulations") are required to submit an annual notification to the Regulatory Authority, setting out the following for each relevant Financial Year:
- the nature of the Relevant Activity being carried out;
- whether it generates Relevant Income;
- the date of the end of its Financial Year;
- any other information as may be requested by the Regulatory Authority.
Where entities are relying on Exempted Licencee status, a notification still needs to be filed with the Regulatory Authority.
Deadline for filing notification is within six months from the end of the entity's financial year. Non-compliance with the obligation to file a notification before the deadline is subject to a penalty of AED20,000.
ES Report
Entities carrying out a Relevant Activity that are not an Exempted Licencee and that derive Relevant Income from the Relevant Activity shall be required to meet the applicable Economic Substance Test requirements and submit an ES Report containing the requisite information and documentation prescribed under the ES Regulations.
Deadline for filing the ES Report is within twelve months from the end of the entity's financial year. Non-compliance with the obligation to file an ES Report before the deadline is subject to a penalty of AED50,000.
Should you have any queries regarding ES filing services, please send an email directly to WalkersDubaiSubstanceFilings@walkersglobal.com or reach out to any key contacts listed below.
Please note that WPS does not advise on UAE laws. To the extent you require UAE legal or regulatory advice, we can make referrals to a local firm who can assist with this.
