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 Code of Conduct Group on Business Taxation,
the UAE issued Economic Substance Regulations (Cabinet of Ministers Resolution No. 31 of 2019), (the
“Regulations”) on 30 April 2019.
The ESR Regulations apply to companies, partnerships, and other business forms
(Licensee) registered in
the UAE, including a Free Zone and Financial Free Zone, which carry out any Relevant Activity.