By Osman Aboubakr

A reminder that in 2019 the UAE has instituted Economic Substance Regulations (UAE ESRs) that impose requirements on all UAE companies to report on compliance in 2020. Link to the UAE Ministry of Finance website in this regard.

The purpose of the UAE ESRs is to bring the UAE in line with international efforts to clamp down on tax evasion.

In summary, the UAE ESRs apply to all UAE onshore, free zone and offshore entities (awaiting clarification as to whether they apply to branch companies and sole proprietorships) that carry on a “Relevant Activity”:

1.     Banking
2.     Insurance
3.     Fund management
4.     Lease-finance
5.     Headquarters
6.     Shipping
7.     Holding company
8.     Intellectual property (IP) holding and licensing
9.     Distribution and service centers

Check with the UAE authority under which you are incorporated or your legal/financial adviser for application of the UAE ESRs to you and related filing deadlines – in most cases there is an obligation to file a self-declaration notification by June 30, 2020 and a report on compliance by December 31, 2020.

Contact Argentum Law if you would like our support in this regard.

Argentum Law is an international advisory firm built on leveraging technology and connectivity to provide general counsel and transactional services through virtual offices. With years of experience working remotely, our lawyers are available to provide counsel with minimal disruption during this time of crisis.

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