Following the introduction of the reporting requirements under the Economic Substance Rules in the UAE all businesses in the UAE will be required to submit an annual report as to whether or not they are carrying on genuine business activities and generating core income in the UAE.
Potential Fines
If you fail to have sufficient local economic substance you may be subject to annual fines ranging from AED 10,000 to AED 300,000.
When?
The first reporting period will cover any financial year starting after 1 January 2019 so you will need to be able to demonstrate compliance with the regulations during this calendar year.
Action
For a fixed fee of only AED 2,500 Clyde & Co are able to support your analysis of your business activities to assist you in your reporting requirements. We will provide you with a questionnaire to complete in relation to your company and then produce a report that will guide you as to the steps you should take to ensure that you are in compliance with these new regulations.
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.