Compliance

The UAE Cabinet Issued The Cabinet Of Ministers Resolution No. 31 Of 2019 Concerning Economic Substance Regulations (ESR) Requiring All In-Scope UAE Entities To Comply With The Inclusive Framework On Base Erosion And Profit Shifting (BEPS) To Ensure That Profits Are Accounted By The Entities Where The Actual Economic Activities Are Conducted And Value Created. ESR Requires All Businesses Having A Commercial License, Certificate Of Incorporation Or Similar Permits Issued By Any Regulatory Authority In UAE (Licensees) Carrying Out One Or More Relevant Activity To Substantiate Adequate Economic Substance In The UAE. Whereas, ESR Excludes UAE Licensees With Direct Or Indirect Holding of At Least 51% By Any UAE Government, Governmental Authority And/Or Body.