Economic Substance Regulations Dubai

ESR Filing Dubai



The United Arab Emirates adopted the ESR in 2019. These directives compel UAE entities and branches to execute specific geographically fluid operations to preserve the necessary presence in the nation. If an organization meets the criteria to be exempt, it is not essential to demonstrate its economic presence there. However, such groups must provide notification and the necessary documentation to support their exemption. Businesses should ensure they stay on top of their compliance duties, given the serious repercussions of non-compliance with the ESR. To avoid paying costly fines and having your business license suspended, among other things, it is essential to maintain effective governance.


Enterprises in Dubai and the UAE are required by ESR to maintain the economic substance in the UAE for any pertinent activities they engage in and make income from, including offshore organizations and branches of domestic and foreign companies. Organizations must adhere to the annual filing requirements to avoid penalties. Our ESR specialists at Flying Colour Tax accounting company in Dubai assist you with the full filing of the ESR, regulations, notification and reporting obligations, and numerous practical issues linked to the ESR.

ESR Specialists Dubai – Filing Annual Economic Substance

Impact Evaluation

Action Plan and Gap Analysis

Filing Reports

Notice of ESR Filing Deadlines and Requirements

Submitting Documents and Summary of Relevant Activities

Activities Covered under the Economic Substances Regulations

The impacts of the Economic Substance Regulation may only be evaluated broadly. Each year, a relevant entity (as defined by the resolution) must give specified information to the appropriate regulatory authority on its relevant activities. The relevant entities engaged in a relevant activity must file a report following the regulations. However, they would no longer be able to conduct their affairs in the United Arab Emirates with the same freedom.

If the value of the revenues and costs from each function were disclosed, the Regulatory Authority would have an overview of each entity’s performance. As a result, firms could not shift their profits without supporting local economic activities. Since they must now record the management, supervision, and number of employees of Relevant Activity, Multi-National Company groupings would be impacted. To complete its objectives, this group hires a third party. To verify that laws comply, they must reform their governance model to incorporate changes in response to the UAE’s needs for an economic substance.

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Flyingcolour® Tax Consultant and J N J Auditing LLC provide accounting and bookkeeping services, tax related services, auditing, economic substance regulation (ESR) services, anti-money laundering compliance services, tax residency certificate assistance, payroll services, excise tax services, other compliance, and CFO services, etc. through our team of experienced professionals. We cover comprehensive and customized packages tailored to your specific requirements.

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