UAE Economic Substance Requirement (‘’ESR’’)28-05-2020
COMPLIANCE ALERT: UAE Economic Substance Requirement (“ESR”)
The Economic Substance legislation introduced by the UAE government last year (Cabinet of Minister’s Resolution No. (31) of 2019) (the “Law”) in line with the UAE’s commitment as a member of the OECD Inclusive Framework has already outlined the economic substance requirements for all onshore, free zone and offshore UAE entities as well as guidance on the application of ESR and its relevant requirements, including but not limited to the business activities subject to ESR (the “Relevant Activities”).
The UAE government has also made UAE licensing authorities (mainland and free zone) responsible for the regulation, administration and issuance of guidelines for the ESR compliance of their respective licensees (the “Regulators”). With regards to the notification requirement for entities conducting any of the relevant activities outlined by the Law, the UAE Ministry of Finance (“MOF”) has instructed most regulators to set the Notification Deadline as June 30th 2020.
However, some of the Regulators’ deadlines do vary- examples outlined below:
DAFZA- Dubai Airport Free Zone: May 31st 2020
DWC- Dubai World Central: June 7th 2020
DIFC- Dubai International Financial Centre: June 12th 2020
ADGM- Abu Dhabi Global Markets, DMCC- Dubai Multi Commodities Centre, RAK ICC- Ras Al Khaimah International Corporate Centre, RAKEZ- Ras Al Khaimah Economic Zone: June 30th 2020.
Ensure your compliance
Get in touch with our Corporate & Commercial Team who would be pleased to support and guide you in order to ensure your ultimate protection and compliance with the Economic Substance deadlines and requirements, completion and submission of notification filing in due time.