As part of the UAE’s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE’s tax framework by the European Union (“EU”) Code of Conduct Group on Business Taxation, the UAE introduced a Resolution on the Economic Substance (Cabinet of Ministers Resolution No.31 of 2019, the “Regulations”) on 30 April 2019.

The Regulations require UAE onshore and free zone companies and other UAE business forms to carry out any of the “Relevant Activities” to maintain an adequate “economic presence” in the UAE relative to the activities they undertake.

ESR is not applicable for UAE license with direct or indirect holding of at least 51% by any UAE Government, Government Authority or Government body.

List of “Relevant Activities”