Following the UAE’s inclusion in the European Union's Code of Conduct Group blacklist and in line with the OECD’s ongoing efforts to combat harmful tax practices under Action 5 of the BEPS project, the UAE introduced Regulations on Economic Substance Requirements (ESR), effective 1 January 2019. We are now in the second year of ESR reporting, with filings for year ended 31 December 2020 to be completed by 31 December 2021.
This video series seeks to help businesses better understand economic substance requirements, where KPMG's ESR specialists in the UAE will provide an overview of the relevant activities, economic substance test, and compliance obligations.
KPMG’s large international tax team can help clients with all ESR-related matters.
KPMG's tax team advises clients on ESR matters, providing the following services:
- Assessing whether the business activities conducted fall within any of the Relevant Activities and whether any exemption can be availed
- Assistance in filing the notification
- Assessing whether the Economic Substance Tests are met and advising on documentation to be maintained to support any future inquiries from the authorities
- Assistance in filing the report, as well as any supporting documentation
- Identify gaps between existing substance and the level of substance required under ESR and advise on remedial measures
- Assistance in responding to inquiries from the regulatory authorities/FTA