UPDATE – Economic Substance Regulations in the UAE
The UAE Government has revised the UAE Economic Substance Regulations (“ESR”) by issuing UAE Cabinet Resolution No. 57 of 2020 concerning Economic Substance and the updated guidance Ministerial Decision No. 100 of 2020 on the issuance of directives for the implementation of the provisions of the Cabinet Decision No. 57 of 2020 concerning Economic Substance Requirements (“the Regulations”). The Regulations require UAE onshore and free zone companies and certain other business forms that carry out any of the defined “Relevant Activities” listed to maintain and demonstrate an adequate “economic presence” in the UAE relative to the activities they undertake (“Economic Substance Test”). MENA LEGAL informed about the introduction of the ESR in our respective previous newsletters.
