Economic Substance Regulations
The UAE has enacted Economic Substance Regulations (“ESR”) that applies in all UAE jurisdictions, including all free zones and financial free zones such as the DIFC. The businesses in the UAE will now have to prove their Economic and Substantial existence in the UAE and have to apply the substance over form approach to such a review. As per Article 8 of this regulation the Licensees need to file Economic Substance Notification and Economic Substance Return with its Regulatory Authority within the declared due dates.
Following resolutions and decisions have been passed by the UAE Ministry of Finance in this regards:
Following resolutions and decisions have been passed by the UAE Ministry of Finance in this regards:
As per Cabinet Resolution No. 31 of 2019, Relevant Activity means following:
- BankingBusinesses
- InsuranceBusinesses
- Investment Fund ManagementBusinesses
- Lease-FinanceBusinesses
- ShippingBusinesses
- Holding CompanyBusinesses
- Intellectual Property Businesses
- Headquarter Businesses
- Distribution and Service Centre Businesses
- Please refer to the UAE Economic Substance Relevant Activities Guide issued by the Ministry of Finance for further information and explanation on each of the above Relevant Activities.
We at Nadeem and Umendra Chartered Accountants have setup a team of professionals specifically to help business owners understand the regulations and make sure that you are compliant with Economic Substance Regulation in UAE using following approach:
Stage I :Identify whether your business is within the scope of the regulations. Accordingly, provide support and guidance on filing notification with the Regulatory Authority within specified deadlines.
Stage II: If within the scope of the Regulations, check whether your business pass the Economic Substance Test. We will Identify the non-compliant elements if criteria of Regulations are not met and provide suggestions to correct the weaknesses in order to pass the Economic Substance Test.
Stage III: Filing of returns and reports to the Relevant Regulatory Authority before the Due date.
We always strive to provide our clients with peace of mind for doing business while we take care of your compliances.
For Assessment on Economic Substance Regulations in UAE
Contact Person: Mr. Umendra Chaturvedi Email: umendra@nufca.com Mobile:+971 55 52 04 830 | Contact Person: Mr. Samir Popat Email: samir@nufca.com Mobile: +971 55 98 31 923 |
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