The purpose of the ESR is to prevent businesses, typically multinational corporations, from artificially shifting profits to jurisdictions that impose little or no income tax without having substantial activities in that jurisdiction to take advantage of their tax laws. The UAE is considered one of these jurisdictions. Exempted Licensees and Licensees who undertake any kind of Relevant Activity irrespective of any income earned from the Relevant Activity during the financial period are required to file a Notification within six months from the end of the relevant financial period.