Economic substance regulations
UAE economic substance reporting has been discontinued for later financial periods, but substance still matters.
Current position
The UAE discontinued ESR notification and reporting for financial periods starting on or after 1 January 2023. Obligations and penalties for earlier periods may still need to be closed out.
Why substance still matters
- The Qualifying free zone person regime requires adequate substance
- Treaty benefits and tax residency certificates depend on real management in the UAE
- Home-country tax authorities look at where a company is really run
- Banks assess substance when opening accounts
Common questions
Do I need to file ESR for 2022?
If your company had ESR obligations for periods before 2023 that were not met, speak to us about closing them out.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.