Some free zones have extended the March 31 deadline for companies to file Notification of Economic Substance Regulation with their relevant activities and core income-generating activities for businesses managed within and from the UAE.
The leniency for the new deadline to June 30 will ensure timely adherence to regulation and is in line with the Ministry of Finance's deadline.
"The cutoff date of the notification to the Ministry of Finance is 30 June 2020 and that's what was communicated to all regulators. To assure the compliance, some regulators decided to cut it short," said Younis Haji Al Khouri, Undersecretary at the Ministry of Finance.
Dubai International Financial Centre had asked entities to submit an economic substance notification on the DIFC portal. However the March 31, 2020 deadline previously advised is no longer applicable, it said on its website.
As part of the UAE's commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE's tax framework by the European Union Code of Conduct Group of Business Taxation, the UAE introduces a Resolution on the Economic Substance on April 30, 2019. The regulation required companies that carry out the relevant activities to maintain an adequate economic presence in the country relative to the activities they undertake. It applied to the financial year commending on or from January 1, 2019.