- within Corporate/Commercial Law topic(s)
- in United States
- with readers working within the Accounting & Consultancy industries
- within Accounting and Audit, Immigration and Insurance topic(s)
KEY TAKEAWAYS:
- We now provide Economic Substance Notification (ESN) and
Economic Substance Report (ES Report) filing services for ADGM and
DIFC entities
- ADGM and DIFC entities must submit ES Notifications annually,
detailing activities, income and financial year-end, within six
months to avoid a AED 20,000 penalty
- Entities with relevant activities and income must file an ES Report within twelve months to meet Economic Substance Test requirements, facing a AED 50,000 penalty for non-compliance
Walkers Professional Services (Middle East) Limited ("WPS") is pleased to announce the expansion of our incorporation and corporate services offering to include Economic Substance Notification ("ESN") and Economic Substance Report ("ES Report") filings for ADGM and DIFC entities.
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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
