Contact Us - UAE Economic Substance Regulations changes
What does this mean for your business?
All businesses in the UAE and overseas multinationals with entities in the UAE performing a wide range of ‘relevant activities’ will need to comply with the UAE’s Economic Substance Regulations.
Economic Substance Regulations have been in place in the UAE since April 2019 (affecting financial years 2019 onwards). On 1 September 2020, the Ministry of Finance released a replacement of the former regulations, with revised regulations and guidance being released.
For many UAE businesses, this will mean a re-assessment of whether the rules apply, and, if they do, consideration of whether the required substance levels are met. Key deadlines are expected to be Q4 for re-notification and the first substance return due by 31 December this year.
There are fairly significant penalties for failing to comply and companies that are not compliant will also be reported to relevant foreign competent authorities.
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