The ESR UAE came into force in 2019 as a means to strengthen the nation’s taxation system. By adding this additional legal requirement, the UAE was able to get off the EU’s tax Blacklist and improve its credibility within international markets. The ESR in Dubai led to the addition of two filing requirements, which are as follows;

  • ESR notification form
  • Annual Substance Report


ESR in Dubai

The ESR form UAE must be filed by all entities that engage in Relevant Activities within the UAE. All such companies must first perform an Economic Substance Test. This test will be able to verify and report details regarding the relevant activity performed and the extent of operations. Concerned entities must then also submit an annual substance report that indicates their economic presence in the UAE and proves that it is adequate. 

Need for ESR Form UAE

The Economic Substance Regulations help countries which do not impose any corporate tax to comply with international guidelines on taxation. Not only does it help prevent tax evasion and avoidance, but it also strengthens a nation’s tax infrastructure. The Regulations essentially make it mandatory for companies to demonstrate that they engage in the required economic activities within the UAE. In the UAE, both Onshore and Free Zone companies have to comply with such laws. 

The UAE Economic Substance Regulations came into force in April 2019, and further guidelines regarding the same came out in September of the same year. Amendments were made to the predetermined legislation after consultation with the EU and OECD in August 2020. As you can see, keeping up with new amendments and changes might not be very easy. However, rest assured because KGRN is here for you. We offer one of the best ESR services in UAE and can create tailor-made solutions as per your needs. So, partner with us and never worry about ESR compliance again!

For more Detailed information about ESR, Visit: Economic Substance Regulations(ESR) Guidelines

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