ESR - Taxfy

The Economic Substance Regulations (ESR) was introduced in the UAE in April 2019 through cabinet resolution number 31 of 2019. ESR require businesses that carry out certain activities to maintain and demonstrate an adequate economic presence in the UAE relative to the activities they undertake and to ensure that are not used to artificially attract profits that are not related with the economic activity undertaken in the UAE. The ESR regulations are applicable to businesses carrying out any of the below relevant activities:

• Banking businesses
• Insurance businesses
• Investment funds management businesses
• Lease and finance businesses
• Headquarters businesses
• Shipping businesses
• Holding company business
• Intellectual property business
• Distribution and service centre

Our experts at Taxfy can assist you with ESR assessment to advise whether your business falls within the scope of the ESR law and make sure you are compliant with the ESR regulations.