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Statutory Audit
We conduct an integrated audit, which combines the financial statement audit,independent and objective assurance on financial information, transactionsand processes.
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Limited Review
We offer services relating to reviews of historical financial informationby expressing negative assurance on such historical financial information.
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Agreed Upon Procedures
We engage with organisationsto perform specific procedures and report findings to conform to their needs.
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Financial Reporting Advisory Services (FRAS)
Our team provides timely advice on the impact of accounting changes to assist businesses in the development of an appropriate implementation roadmap.
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Business Consulting
Grant Thornton UAE provides organisations with implementable plans that drive sustainable growth strategies to grow and optimise their business performance.
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Business Risk Services
Organisations need to understand risks thoroughly to be able to manage them better. Grant Thornton UAE helps businesses achieve the best balance between minimising risk exposure, optimising profitability and developing compliance review checklists.
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Regulatory Advisory Services
Grant Thornton UAE's extensive understanding of the overarching supervisory framework within the region equips our professionals to support financial institutions comply and abide by the set of regulatory mandates throughout the rapidly evolving ecosystem.
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Financial Advisory
Grant Thornton UAE works with organisations on transactions from start to finish, assisting with strategy, identifying risks, executing deals, and helping to unlock their potential for growth and value creation.
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Restructuring Advisory
Grant Thornton UAE is committed to realising value for shareholders, in a way that recognises and supports the interests of all stakeholders. Our solutions maximise value, provide clarity and direction, and accelerate recovery and transformation for businesses.
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Technology Advisory & Cybersecurity
IT and technology are fundamental to drive the performance of businesses. Through leveraging the power of technology, Grant Thornton UAE helps organisations define and identify growth opportunities to achieve value-driven transformation and innovation.
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Forensics
Fraud and corruption pose a growing challenge worldwide. As the commercial landscape changes, an increasingly regulated environment requires stringent governance and compliance processes. Grant Thornton UAE helps organisations navigate challenges and crisis with a hands-on approach coupled with the use of technology.
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ESG Services
The Environment, Social and Governance (ESG) agenda has gained significant traction over the years, to become one of the key strategic aspects of any business. It is imperative that all organisations, irrespective of industry sector, engage with their stakeholders and prioritise ESG practices to unlock sustainable growth opportunities.
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Business Process Solutions
Our team at Grant Thornton offers comprehensive and cost effective outsourced solutions, enabling stakeholders and business owners to focus on their core business goals.
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Corporate Tax
Our diversified team of corporate tax subject matter experts combines a perfect blend of international experience across several industry sectors, technical expertise, and commercial nuances with a commitment to deliver exceptional value to your business.
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VAT
The VAT team at Grant Thornton is well versed with the VAT Laws applicable across the region and holds valuable experience and professional accreditation in assisting clients across diverse industries to comply with the VAT obligations.
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Transfer Pricing
Grant Thornton UAE assists its clients in providing transfer pricing solutions that are implementable and operational, considering the facts and concerns of its clients.
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International Tax and Tax Due Diligence
Grant Thornton UAE supports multinational groups to optimise their tax structures. We can also assist businesses in analysing existing group transactions and inter-group supplies, as well as advising on potential implications of various taxes to facilitate an efficient Group tax structure.
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Economic Substance Requirements
Economic Substance rules were introduced in the UAE in 2019, requiring UAE businesses that undertake certain ‘Relevant Activities’ to maintain and demonstrate adequate substance.
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Customs and International Trade
The team at Grant Thornton is positioned centrally to assist the businesses with global cross-border tax structuring, planning and compliance needs.
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Excise Tax
We provide Excise Tax related advisory and compliance services to the producer, importer, and the storekeeper of excisable goods
Tax Alert - April 2021
25 Apr 2021Are you ready for the next Economic Substance Filing?
As you may be aware, the Economic Substance Regulations (ESR) is an annual compliance requirement in the UAE. For the financial year ended 31 December 2020 (FY20), UAE businesses are required to file their ES Notifications no later than 30 June 2021 through the Ministry of Finance (MoF) ESR Portal.
It is strongly recommended that UAE businesses periodically assess their business activities to report any change in Relevant Activities; and determine whether the business would be in-scope or exempted from Economic Substance (ES) Reporting for the relevant reporting year.
Backgound
The Economic Substance Regulations (ES”) was first introduced in the UAE in April 2019 through Cabinet Resolution No. 31 and was recently amended by Cabinet Decision No. 57, along with the updated guidance (Ministerial Decision No. 100 of 2020) in September 2020. The Amended ESR applies retrospectively from 1 January 2019. The ESR requires UAE onshore and free zone companies that carry out “Relevant Activities” to maintain and demonstrate an adequate “economic presence” in the UAE relative to the activities they undertake i.e. ES Test.
An annual ES Notification is required to be submitted by Licensees (including Exempted Licensees) within six months from the end of the relevant financial period. For entities that undertake a “Relevant Activity”, they will also be required to submit a full ES Report within 12 months from the end of their financial year.
Click here for our Tax Alert on Amended ESR in the UAE.
The first reporting year was FY19 where most UAE business have successfully submitted their ES Report on or before 31 December 2020. The deadline was later extended to 31 January 2021 to support the businesses that have been impacted by Covid-19.
The Federal Tax Authority has levied penalties to several Licensees for non-compliance with respect to FY19 ESR filing, including multiple submission and non-submission of ES Notifications and ES Reports. Licensees can file an appeal through the MoF ESR Portal on certain grounds i.e., (i) it did not commit a violation; (ii) the penalty imposed is not proportionate to the violation; and (iii) the administrative penalty imposed exceeds the limit prescribed.
Penalties
Failure to resubmit an ES Notification will result in fine of AED 20,000 and failure to comply with the ESR (including failure to file an ES Report, demonstrating economic substance and providing inaccurate or incomplete information) will result in fine of AED 50,000 in any fiscal year. The fines can reach up to AED 400,000 and can expose a UAE entity to spontaneous exchange of information with the Foreign Competent Authority, as well as other administrative sanctions such as the suspension, revocation or non-renewal of the entity’s trade license or permit.
Next Steps
Businesses are required to assess whether they fall within the remit of any Relevant Activity under the ESR and understand their filing obligations for each reporting year. For FY20, UAE businesses are required to file their ES Notifications by 30 June 2021 and ES Report (where applicable) by 31 December 2021.
Contact Us
Our tax team can support your businesses with:
- Economic Substance Impact Assessment
- Assistance in Filing Economic Substance Notification
- Assistance in Filing Economic Substance Report
- Assistance in Appeal Process
Get in touch with our team of experts, Steven Ireland, the UAE Head of International Tax, and Amisha Anil, our Tax Manager to further assist you on this matter.