Article 8 of the Cabinet Resolution 57 of 2020 sheds light on the notification and reporting requirements that the entities must meet to comply with the ESR. It states that every Licensee is now required to file annual ESR notification to the relevant Regulatory Authority. Audit firms in Dubai will assist you in filling the notification with the following mandatory details :

1. Whether the business entity has carried out a relevant activity or not
2. Whether the company has generated any income from the relevant activity

The notification will be filed through the Ministry of Finance's dedicated online portal. The notification will be processed between the regulatory authorities and the Federal Tax Authority (FTA), which is the National Assessing Authority for the ESR.

The FTA, in its capacity as a National Assessing Authority, will oversee compliance and control of the Updated ESR. FTA, among other things, will also assess if the Licensee has met the Economic Substance Test. It will also decide the necessary course of action to follow if your entity fails to meet the ESR test.

The Economic Substance Regulations (ESR) compliant has announced the extended its deadline by a month in UAE. It came as a relief to all the businesses as The ESR Notification and the ESR Report were earlier due on December 31, 2020 and can now be submitted on or before January 31.This extensions should be seen as an opportunity to get things done on this period. Businesses were caught in a year end rush having submitted the ESR notifications in June last and the amendment came in September. They had bear extra advisory costs and arbitrary data calculations. This will give the business owners to get their reports in order and make them ESR Compliant.

In this extension period businesses can make the best use of this period to examine ESR implications and undertake the compliance work accordingly. Businesses that have already submitted the Notification or the ESR report will also get the option to amend the submission. Also, these corrections will not result in any kind of penalties. The ESR Compliance Requires the board meeting reports of organizations and if the meeting were not held in person or overseas, then it demands a clarification. The information in the ESR report is very critical for the authorities to check if all the ESR Requirements have been met. The data in the report should be apt and well explained in the report. 

Muscat: Oman plans to take a step unheard of in the Gulf region: It's going to start taxing the income of wealthy individuals beginning in 2022, as part of a broader programme to tackle a budget deficit that's ballooned due to low oil prices and the coronavirus pandemic.

By reducing government spending while spurring investments, the plan is projected to bring the budget deficit - estimated to reach nearly 19 per cent of gross domestic product in 2020 by the International Monetary Fund - to 1.7 per cent by 2024, the Ministry of Finance said in an emailed statement. Revenue from the income tax will be used to fund social programmes.

The tax would apply to high-income individuals, but the plan - whose implementation is still currently being studied - doesn't specify income brackets.

Starting from today, only the new generation of eDirham will be accepted for processing your tax payments. This new version of the eDirham is to provide you with an easier, more transparent and secure experience.

Visit www.eDirham.ae to know more