1
As
your compliance calendar would indicate, it is
the time of the year where the deadline for
filing the annual Economic Substance Regulations
(‘ESR’) Report and Country by Country
Report (‘CbCR’) compliances is fast
approaching, for businesses with financial year
end of 31 December.
While, for many,
this could be a known area of compliance,
these filings continue to be of high
significance for more than one reason. For
some businesses, this year’s filings would
revalidate their previous stance and reaffirm
their business model. Some businesses could
witness a deviation from their previous stance
on account of say, a better comprehension of
the underlying principles and/or due to the
changed economic profile of UAE operations pre
versus post COVID peaks. There have also been
instances where the regulatory authorities
have interacted with some UAE entities on
their previous filings and this has
potentially led to some modifications in the
quality of disclosures.
your compliance calendar would indicate, it is
the time of the year where the deadline for
filing the annual Economic Substance Regulations
(‘ESR’) Report and Country by Country
Report (‘CbCR’) compliances is fast
approaching, for businesses with financial year
end of 31 December.
While, for many,
this could be a known area of compliance,
these filings continue to be of high
significance for more than one reason. For
some businesses, this year’s filings would
revalidate their previous stance and reaffirm
their business model. Some businesses could
witness a deviation from their previous stance
on account of say, a better comprehension of
the underlying principles and/or due to the
changed economic profile of UAE operations pre
versus post COVID peaks. There have also been
instances where the regulatory authorities
have interacted with some UAE entities on
their previous filings and this has
potentially led to some modifications in the
quality of disclosures.
In either scenario,
the following timelines should be respected
and, the underlying analysis as well as
documentation is expected to be robust from
an ESR audit perspective.
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