Old ESR notices for 2021
I received an Economic Substance notice for 2021. Do I still need to deal with it?
The situation
Yes. ESR still applies to financial years from 1 January 2019 to 31 December 2022. It no longer applies to periods starting on or after 1 January 2023.
The law
- Cabinet Decision 98 of 2024 amending Cabinet Decision 57 of 2020: ESR limited to periods up to 31 December 2022
What it means for you
Missing ESR filings for 2019 to 2022 must still be filed. Penalties for later years are cancelled and refunded. Example: a company with a 2021 relevant activity must file its 2021 report; a penalty charged for 2023 should be cancelled.
What to do
- Check which financial years the notice covers.
- File missing notifications or reports for 2019 to 2022.
- Ask for cancellation of any post-2022 penalty.
- Keep evidence of filing.
We can do this for youBookkeeping, accounting standards and audited financial statements: what the FTA, free zones and banks require: AED 800