The Ministry of Finance has made an important announcement on 2 September 2024 for Economic Substance Regulation (ESR).

Key Points:

End of Economic Substance Reporting Requirements:

• The Ministry of Finance of the UAE has officially announced that licensees are no longer required to submit Economic Substance Notifications and Reports for any financial years ending after 31 December 2022.
• This decision is in line with the Cabinet Resolution No. (98) of 2024, which has amended the scope of the UAE Economic Substance Regulation (ESR).

Scope of new ESR Regulation:

• According to the new resolution, the UAE Economic Substance Regulation will now apply only to financial years that fall between 1 January 2019 and 31 December 2022.
• The regulation will not apply to any financial years beginning on or after 1 January 2023.

To gain a more comprehensive understanding of the legal treatment and penalty provisions related to the Economic Substance Regulation (ESR), we encourage you to read our full article, which provides an in-depth analysis with examples of the law’s application, compliance requirements, and penalty treatments according to new provisions.

Read More