ESR & TAXATION SERVICES
The UAE issued Economic Substance Regulations, also known as ESR, on 30th April 2019. ESR implies that the Licensee companies, i.e., companies with a license in the free-zone & onshore, are carrying out and managing the relevant activities in the UAE. Their relevant Core Income Generating Activities (CIGAs) take place within UAE & that the Licensee has adequate employees, premises, and expenditure in the UAE.
And it was made mandatory for the following institutions to submit their ESR notification to the respective regulatory authority:
Banking Business
Lease-Finance Business
Holding Company Business
Insurance Business
Headquarters Business
Intellectual property Business (IP)
Investment Fund management Business
Shipping Business
Distribution & Service Centre Business
If they fail to submit their ESR notification, it might lead to a penalty of AED 10,000 to AED 300,000 to the Ministry of Finance for non-compliance with the regulation.
UAE, being a country that has signed a DTAA treaty with more than a hundred countries, allows different nationals doing business in the UAE to get an omission in double taxation of the same income in various countries. For availing the benefit of the same, a company needs a Tax Resident Certificate / Tax Domicile Certificate. It is a legal document issued by the Ministry of Finance in UAE for individuals & companies. It is proof that the individual or company receives income in this country and pays taxes here in the UAE at the local rate (almost 0%).
Does this all sound hectic, overwhelming? Why worry when BRACE Corporate Services is at your service? We provide you with the best assistance in acquiring all the required documents.
Our team consists of qualified chartered accountants with experience of more than two decades in the field of accounts & taxation to help you with the complexities of the regulations and frequently changing legislation. We ensure that your business does not face any hurdles or complications with the VAT rules and regulations. Our solutions are tailor-made to meet the diverse business needs of our clients. The VAT services we provide are: