What is Economic Substance Report (ESR)?

An Economic Substance Report (ESR) outlines how the company's operations align with the economic substance requirements set by regulatory authorities. Filing Buddy assists to prepare the report for the National Assessing Authority with the information on Licensee and Income, expenditure, assets, employees and governance related to activities in the UAE.

• Mandatory Compliance: The Economic Substance Report (ESR) is a mandatory compliance requirement in the UAE.
• Applicable Activities: This applies to businesses engaged in specified activities such as banking, insurance, distribution, and holding companies.
• Demonstration of Substantial Activities: The report necessitates businesses to detail their economic activities, showcasing substantial operations, assets, and personnel presence within the UAE.
• Prevention of Tax Avoidance: The primary objective is to prevent tax avoidance by ensuring companies have a genuine economic presence in the UAE, aligning with international standards.
• Submission Deadline: Businesses subject to ESR regulations must annually submit the Economic Substance Report within a specified deadline, providing operational transparency and accountability.

A corporate entity like Limited Liability Company, Public Joint Stock Company, Private Joint Stock Company, etc. or a partnership  to include limited liability partnership, general partnership, etc. is required to submit an Economic Substance Report if it is not classified as an exempted licensee and generates relevant income from any of the specified relevant activities within a reportable period: 

• Banking Businesses
• Insurance Businesses
• Investment Fund Management Businesses
• Lease-Finance Businesses
• Headquartered Businesses
• Shipping Businesses
• Holding Company Businesses
• Intellectual Property Businesses
• Distribution and Service Centre Businesses.

• Specialised Support: Filing Buddy offers technical support to help businesses and companies comprehend and navigate the intricate demands of the UAE's Economic Substance Report (ESR).
• Ensuring Compliance: The platform aids companies in meeting regulatory requirements by providing a simplified process to prepare and submit the essential documentation needed for the ESR.
• Deadline Management: Filing Buddy helps your business in the UAE manage ESR submission deadlines, ensuring timely and accurate filings to avoid penalties or legal complications.
• Customised Solutions: Tailored to the specific needs of your company, Filing Buddy offers customised solutions to address each business's unique aspects and ESR activities.
• Continuous Updates: The platform keeps your business informed about any changes or updates in ESR regulations, helping them stay current with the evolving compliance landscape in the UAE.