What is Economic Substance Regulation for DMCC in UAE?
Dubai Multi Commodities Centre (DMCC) is a Regulatory Authority for UAE in Economic Substance Regulation. DMCC is home to more than 12,000 companies from all over the world. Economic Substance Notification is the obligation of legislation filed by all the licensees conducting Relevant Activity.
Relevant activity means the Banking Business, Insurance Business, Investment Fund Management Business, Lease-Finance Business, Holding Company, Headquartered Business, Shipping Business, Intellectual Property Business, and Distribution & Service Centre Business.
Licensees are liable for steering the appraisal to confirm it carries out a Relevant Activity or not. DMCC Regulatory Authority’s not responsible for conducting an assessment on the applicability of Economic Substance Regulations in the UAE.
Are all the firms in DMCC obligated to submit the Economic Substance Notification?
No, not all companies in DMCC require presenting the Economic Substance Notification. Only corporations delivering Relevant Activity in DMCC should compulsorily file the Economic Substance Notification. The submission of the Economic Substance Notification deadline is specified in the bill.
Is the furnished deadline relevant to all entities in DMCC falling under Economic Substance Regulation in UAE?
No, the deadline pertains to only those entities falling under this law for Economic Substance Regulation UAE in DMCC.
What occurs in the situation of Non-compliance with Economic Substance Regulations in UAE?
If any licensee in DMCC does not comply with the obligation of filing the Economic Substance Notification. Such a Licensee may have to suffer punitive outcomes as implemented by the law. The punishment for non-compliance of Economic Substance Regulations in UAE:
- AED 10,000 to AED 50,000 in the first year
- AED 50,000 to AED 300,000 in case of repetition of the violation
Additional, failure by a license holder to comply with Economic Substance Regulations UAE can end in:
- Spontaneous Transfer of Information with International Competent Authority
- Possible suspension
- Repudiation of the registration
How can an Accounting firm help Economic Substance Regulations in UAE?
Accounting firms have a specific unit on the subject to aid and supervise on the Compliance with Economic Substance Regulations in UAE with the following process:
- Monitor Business Activities in detail and evaluate the applicability of Economic Substance Regulation (ESR) on the activities. It also renders aid and supervision on filing Economic Substance Notification with DMCC.
- Provide orientation and aid for compliance with the stipulations of the Regulation to conduct Impact Study and Gap Analysis. It assesses whether the organization suffices the Compliance test and presents suggestions.
- Quality-driven specialists are well-versed with working expertise in assisting corporations with the applicability of Economic Substance Regulation in the UAE. They shall assist resolve the applicability of this law and support with Economic Substance Notification.
For enquiries, call +971 5679 52590 / E-mail: firstname.lastname@example.org