Received Penalties For Non-Submission Of ESR Report?!. File An Appeal

Received Penalties For No-Submission Of ESR Report?!. File An Appeal

Did you successfully submit the Economic Substance Notification & Economic Substance Report of your company to the Ministry of Finance?

Did you get any response from the authority is after that?

Many licensees in the UAE have come across penalty emails from the Ministry of Finance.

Did you get any such penalty email?

If yes, do you know how to resolve the issues? In order to resolve such issues, we should know exactly the reason for receiving such a penalty ticket from the Authority. We have listed down some of the reasons why you might have received penalty emails

Situation in which Economic Substance Notification is submitted declaring a Specific Relevant Activity. Later the Economic Substance notification amendment was filed that it is not covered in Relevant activity neither earning relevant income in the Economic Substance Notification.

In this case, the company need not submit the Economic Substance Report. But the approval for Amendment on Economic Substance Notification might have taken the time and by then the Economic Substance Report Tab becomes active.

Economic Substance Report was not filed since it is not carrying relevant activity . Still, the penalty ticket may raise.

How to waive off the penalties generated from situations like above?

In the above-given scenarios, the Licensee or Exempted Licensee will have the option to Appeal.

Article 13 & 14 of the Economic Substance Regulation provides the offences & penalties for failure to provide Notification and Report, respectively.  The administrative penalty will be levied on that Licensee or Exempted Licensee who fails to submit Notification & Report (wherever applicable) as below:
Failure to submit    Penalty Amount

Failure to submit Penalty amount
ECONOMIC SUBSTANCE REGULATION [ESR] Notification AED 20,000
ECONOMIC SUBSTANCE REGULATION [ESR] Report AED 50,000

 

If there is a delay in submitting Economic Substance Notification or Economic Substance Reports, and if such delay is because of the ignorance of the Law, the chance of getting approval for waiving off the penalty cannot be assured through an appeal.

But there are genuine cases as mentioned at the beginning of this article, where the penalty can be appealed and removed. We are happy to resolve your issues by submitting the Appeal to the Authority.

Temporary Zero-rating of Certain Medical Equipment

On 1 September 2020, the Cabinet issued a Cabinet Decision No. 9/12 O of 2020 (“Cabinet Decision”). The Decision concerns the temporary application of VAT at the 0% rate on certain supplies and imports of medical equipment. Furthermore, the Ministerial Decision No. 380 of 2020 (“Ministerial Decision”) issued by the Minister of Health and Prevention on 6 December 2020 (with effect from 1 September 2020) specifies the medical equipment that are zero-rated in accordance with the Cabinet Decision. In accordance with Cabinet Decision No. 15/3 O of 2021, the above decisions shall be effective until 31 December 2021.

In accordance with the Cabinet Decision, a supply or import of certain medical equipment may be zero-rated. It should be noted that that the zero-rating of supplies and imports under the Cabinet Decision is separate, and in addition to, zero-rating of any other medical equipment in accordance with Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate.

The “medical equipment” to which the temporary zero-rating rules apply are personal protective equipment used for the protection from Covid-19, and which contain the features and meet the specifications determined and specified by the Ministerial Decision. Such medical equipment are limited to:

  • Medical face masks that are not included in the Cabinet Decision No. 56 of 2017 on Medications and Medical Equipment Subject to Tax at Zero Rate (of approved standards 14683 and UAE.S ASTM F2100);
  • Half filtered face mask (UAE.S EN 149);
  • Non-Medical “community” face mask made from textile (UAE.S 1956);
  • Single-use gloves (UAE.S ISO 374-2); and
  • Chemical disinfectants and antiseptics intended for use on the human body, but excluding detergents, cosmetics and personal care products (UAE.S EN 1276, EN 1650, and EN 14476:2013+A2).

CONDITIONS TO ZERO-RATING

Date of supply/import of above mentioned medical equipment shall be within the period beginning from 1 September 2020 to 31 December 2021.

Jafza Offshore Company Formation In Dubai And Its Best

Jafza Offshore Company Formation

Jafza Offshore Company Formation – RBS is a professional firm of chartered accountants operating in Dubai, United Arab Emirates offering accounting, auditing, company formation and other financial services across the U.A.E.

Whether it is a start-up or an established enterprise looking to take the next step, we are well-equipped to assist you from ground level to the, pinnacle of success. To identify the highest value opportunity of your businesses and to address your most likely critical challenges, RBS provides the following services: auditing, accounting and outsourcing, business advisory, business strategy, business structuring and corporate finance to a wide range of companies.

RBS – registered agent in Jafza Offshore company formation

 

An offshore company is a very flexible corporate entity. Company Formation In UAE As such it can be integrated into a wide variety of business arrangements. Reduced tax and increased confidentiality are just two of the main benefits which can be achieved by a proper application of the offshore company.

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Features of the JAFZA Offshore company formation

 

 

  • 100 % foreign ownership
  • No tax (VAT – is outside the preview for offshore companies)
  • There is no local office is required, no employees and related costs
  • Full repartition of profit and capital allowed
  • Confidentiality
  • Lower set up and maintenance cost
  • Lower capital requirement
  • Different trustworthy offshore agent in Jafza.

Depending on your circumstances and the financial risk you are willing to take, we can advise whether it is more advantageous to trade as a limited company, a partnership, a Limited Liability or hybrid partnership or as a sole trader – both now and in the future.

Reorganizing the lines of authority and responsibility in an organization achieve efficiency and profitability, while reducing risks involved. Offshore Agent In Jafza To realize these objectives, our advisors offer planning and support services in combining companies, streamlining groups within a company, and integrating common services within an organization.