On this page
- What you need to know now
- Identify the financial year before looking for a deadline
- Review unresolved matters for earlier periods
- Keep ESR and Corporate Tax workstreams separate
- Create a clear handover for the historical file
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
ESR reporting was removed for financial years ending after 31 December 2022. Earlier-year compliance, authority requests and penalties can remain relevant.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- The 2020 filingdates are historical.
- Identify the financial year before assessing a filing.
- Corporate Taxobligations are a separate review.
Identify the financial year before looking for a deadline
The filing dates in the original 2020 announcement are historical. Economic Substance reporting requirements were removed for financial years ending after 31 December 2022. That makes the financial year a necessary starting point: a question about a recent period should not be answered using the old portal-launch timetable.
Prepare a schedule of the entity’s financial year ends and any relevant activities undertaken in earlier years. Keep this distinct from a list of calendar-year registration dates. An entity with a non-calendar accounting period needs its actual financial year end considered rather than an assumption based only on the year in its company name or licence renewal.
Review unresolved matters for earlier periods
Removal of later-year reporting does not erase every earlier compliance obligation. The Ministry of Finance has confirmed that earlier-year obligations, authority information requests and penalties can remain relevant. Review the entity’s own filing history and correspondence before deciding that its ESR file is complete.
Useful evidence includes submitted notifications and reports, acknowledgment references, exemption support and the records used to describe the activity. If a filing cannot be found, distinguish a missing copy from a filing that was never submitted. The corrective action depends on that difference and the authority’s current instructions.
Keep ESR and Corporate Tax workstreams separate
ESR and Corporate Tax address different legal obligations. The ending of a particular ESR reporting requirement should not be interpreted as a general exemption from tax registration, returns or maintaining evidence of business activity. Review each regime on its own terms and for the period that applies.
For a company that previously prepared an ESR report, some supporting information may still be useful commercially: premises records, staffing information and descriptions of decision-making. Retain that evidence where it supports other obligations, but do not assume an old ESR classification automatically settles the company’s present Corporate Tax treatment.
Create a clear handover for the historical file
An effective ESR handover states which financial years were reviewed, what was submitted, which entity identifiers were used and whether anything remains open. Put the source documents and correspondence in a searchable folder with a short index. This helps a successor avoid repeating old filings or overlooking an authority request.
If the company’s management or adviser changes, specifically identify who will monitor unresolved earlier-year matters. The original article remains useful as a record of the 2020 process, while the dated guidance above explains why its old filing deadline should not be copied into a current compliance calendar.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
List the financial years and relevant activities.
- 02
Step 2
Check unresolved obligations for earlier periods.
- 03
Step 3
Keep evidence and respond to outstanding authority requests.
CLEAR ANSWERS
Frequently asked questions
Must a company file ESR for a year ending in 2026?
The reporting requirement was removed for years ending after 31 December 2022.
Were all prior-year obligations cancelled?
No. Earlier compliance and penalties can remain relevant.
Read the original article First published 5 November 2020 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
ESR (Economic Substance Regulations) Filing Deadline
Economic Substance Regulations Update: Notice issued by Ministry of Finance regarding ESR Filing Requirement and Deadline: The Ministry of Finance has issued notice which is intended to provide guidance to entities undertaking one or more Relevant Activities that are required to submit a Notification and/or Economic Substance Report in accordance with Cabinet Decision No 57 of 2020 concerning Economic Substance Requirements (“Decision 57”) and Ministerial Decision No 100 of 2020 (“Ministerial Decision 100”).
Requirement to file on the Ministry of Finance Portal
In accordance with Article 6.7 of Ministerial Decision 100 all Notifications and Economic Substance Reports must only be submitted electronically on the Ministry of Finance Portal.
Licensees that already submitted a Notification directly to their Regulatory Authorities are required to re-submit this Notification on the Ministry of Finance Portal once available.
Article 8.4 of Decision 57 provides that all Economic Substance Reports must be submitted within twelve months from the end of the Financial Year.
Deadlines for filing Notification and ESR reports and penalties for non-filing
Notifications due before the Ministry of Finance Portal goes live.
The filing deadline for Notifications that are due before the Ministry of Finance Portal is available will be extended to 31 December 2020.
Licensees and/or Exempted Licensees that fail to submit their Notification along with the required supporting documents by 31 December 2020 will be issued a penalty of AED 20,000 under Article 13 of Decision 57 for failure to provide a Notification.
Notifications previously filed with Regulatory Authorities
Licensees and/or Exempted Licensees that have submitted a Notification to a Regulatory Authority before the Ministry of Finance Portal goes live (e.g. by the 30 June 2020 deadline) are required to resubmit their Notification by no later than 31 December 2020.
Licensees and/or Exempted Licensees that fail to resubmit their Notification by the aforementioned date shall be subject to a penalty of AED 20,000 under Article 13 of Decision 57 for failure to provide a Notification.
Economic Substance Reports due before the Ministry of Finance Portal goes live.
The filing deadline for Economic Substance Reports for a Financial Year commencing on or after 1 January 2019 and ending on or before 31 December 2019 shall be 31 December 2020.
Licensees and/or Exempted Licensees (where applicable) that fail to submit their Economic Substance Report within the aforementioned period shall be subject to a penalty of AED 50,000 under Article 14 of Decision 57 for failure to provide an Economic Substance Report.
VERIFY THE DETAIL
Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
