The Cabinet Decision Number 31 of 2019 in the United Arab Emirates adopted the Economic Substance Regulation for the first time. The decision to adopt ESR in the country was made in response to the European Union's review of the country's tax framework, as well as the country's membership in the Organization for Economic Development and Cooperation (OECD).
Enterprises registered onshore as well as businesses registered in free zones would be subject to the regulation. The impact of this rule will be enormous, since it would significantly minimise tax evasion and ensure that all enterprises in the country pay the exact amount of taxes.
The UAE government has announced "Cabinet Resolution No. 57 of 2020," which will take the place of the old ESR laws. They will also assist in the clarification of the modified ES Regulations and will take effect on January 1, 2019.
The ESR will be implemented in all UAE enterprises on a yearly basis. As a result, an organisation will be required to deal with the reports on an annual basis. Accroun’s professionals will learn about your organisation and give you with a solution. We will be glad to examine all of your company’s activities and determine whether or not you are in compliance with the law. For further information on ESR in the UAE, please get in touch with us.
We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.