Article 4 of Economic Substance Regulations in UAE

Economic substance is a percept in the UAE’s tax framework, introduced in the UAE from January 1st, 2019, that applies to all businesses, including onshore companies, free zone companies, non-partnership companies, and partnership firms. According to the regulation, every licensee must submit an Economic Substance Regulations UAE form. They can file their periodical report electronically in the official portal of UAE’s Financial Ministry. 

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com

Article 4 is the governing factor on the regulations of the Economic Substance Regulations in the UAE. It mentions the activities that the law identifies as ‘Relevant activities’. The following are the activities that Article 4 of the Economic Substance regulation in the UAE mentions as Relevant:

ESR In UAE

  • Banking Businesses
  • Insurance Businesses
  • Investment Fund Management Businesses
  • Shipping Businesses
  • Lease-Finance Businesses
  • Distribution & Service Centre Businesses
  • Headquarters Businesses
  • Intellectual Property Businesses
  • Holding Company Businesses

You can recognize the above businesses as licensees. And, they must file their Economic Substance Regulations notification form, UAE. 

The economic substance regulations form has to be submitted within the financial year, irrespective of the company’s annual turnover and accumulated profits. Article 4 of the Economic substance regulations form states that the provisions of the law do not apply to companies or businesses in which the Emirati Government or the Federal government has any direct or indirect ownership of over 51% share.

Requirements to meet Economic Substance Test in UAE

KGRN has a team of well-experienced and knowledgeable professionals who are always ready to provide legal assistance for your business-related queries. We provide excellent service round the clock and consider customer satisfaction as our highest priority. Contact our team for further details on Economic Substance Regulations UAE reporting and its obligations.

For more Detailed information about ESR, Visit: Economic Substance Dubai Guidelines

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com



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