Economic Substance Reporting

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    The Economic Substance Regulations (ESR) are issued by the UAE to curb harmful tax practices according to the standards set by OECD (Organisation for Economic Cooperation and Development). The Regulations require companies and other business forms registered in the UAE that carry on one or more “Relevant Activities” to have economic substance in the UAE in relation to these activities, and to comply with notification and return filing obligations.

    It applies to all companies established in the UAE except those entities where a minimum of 51% is directly or indirectly held by Government Authorities and which have income from a relevant sector in the accounting period commencing after January 1, 2019.

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