Gupta Accountants
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Compliance of UAE Economic Substance Regulations

​Gupta Accountants realizes the complex challenges of compliance with UAE Economic Substance Regulations while doing business. Gupta Accountants provides range smart solutions for compliance with UAE Economic Substance Regulations.  
Introduction of Economic Substance Regulations in UAE:
  • ESR have been introduced in countries with low or no corporate taxes, in order to comply with international initiatives to combat harmful tax practices including unlawful avoidance or evasion. ESR requires certain legal entities to demonstrate that they carry out substantial economic activities in these jurisdictions, in accordance with the Economic Substance Test  The UAE has introduced the Economic Substance Regulations which are applicable to the business establishments based on mainland as well as free zones . The purpose of the Regulations is to ensure that UAE entities undertaking certain activities report actual profits that are commensurate with the economic activity undertaken within the UAE. ​​
  • The UAE Economic Substance Regulations came into existence on 30 April 2019. 
  • The UAE Economic Substance Regulations primarily apply to legal entities that carry out a ‘Relevant Activity’ which has been identified under the regulation. ​
  • The Relevant Activities under the Economic Substance Regulations are:
1.  Banking Businesses , 2.  Insurance Businesses,  3.  Investment Fund Management Businesses,  4.  Lease-Finance Businesses,  5. Headquarters Businesses​   6,  Shipping Businesses,  7.  Holding Company Businesses, 8.Intellectual Property Businesses and 9. ​Distribution and Service Centre Businesses
What is Economic Substance Regulations? 

What Compliance is required under the UAE Economic Substance Regulations?

Business Activities, subject to notification - substance test and annual substance return compliance  under the UAE  Economic Substance Regulation 

Economic Substance Regulations in United Arab Emirates

Concerned Regulatory Authorities under ESR - Economic Substance Regulation in UAE

Who is subject to the ESR?
Economic Substance Test:
The Economic Substance Test  requires a an entity to demonstrate that:
  • the entity and the Relevant Activity are being directed and managed in the UAE;
  • the relevant Core Income Generating Activities (CIGAs) are being conducted in the UAE; and 
  • the entity has adequate employees, premises and expenditure in the UAE.
Stages of Compliance with UAE Economic Substance Regulations:
Stage 1 : Notification 
Stage 2: Annual Substance Return 
Regulatory Authority under UAE Economic Substance Regulations:
Regulatory Authority has been specified under the regulations and it is the Regulatory Authorities that set the requirements, deadlines and format for notification filing as they believe is appropriate and which may vary.  Regulatory Authority for the Relevant Activity
Gupta Accountants competent team as ESR Consultants in Dubai, provides supports at all the stages of compliance with UAE Economic Substance Regulations ​
VAT | REGISTRATION | COMPLIANCE | AUDIT | REFUND | CONSULTING 
Why Gupta Accountants ? 
  • Professionally qualified and experienced ESR Consultant and Advisors in Dubai. 
  • Cost Effective ESR compliance services in Dubai and UAE.
  • Compliance to International standards & applicable rules and regulations. 
  • Free Advisory
Gupta Accountants could assist with the ESR Compliance to the companies based in Dubai Airport Free Zone -DAFZA,Dubai Auto Zone, Dubai Cars and Automotive Zone, Dubai Design District, Dubai Flower Centre, Dubai Gold and Diamond Park, Dubai Healthcare City, Dubai Industrial City, Dubai International Academic City, Dubai International Financial Centre -DIFC, Dubai Internet City ,​Dubai Knowledge Park, Dubai Logistics City, Dubai Maritime City Authority, Dubai Media City, Dubai Multi Commodities Centre -DMCC, Dubai Outsource Zone, Dubai Science Park, Dubai Silicon Oasis - DSO, Dubai Studio City, Dubai Production City​ , Dubai Development Authority, ​​​Dubai Techno Park (New name: National Industries Complex)​, Dubai Textile City, Energy and Environment Park, International Humanitarian City , ​Jebel Ali Free Zone Authority JAFZA, Jumeirah Lakes Towers Free Zone, Dubai Production City, Abu Dhabi Airport Business City, Abu Dhabi Global Market -ADGM, Abu Dhabi Ports Company​, ​Higher corporation for specialized economic zones/ ZonesCorp, Industrial City of Abu Dhabi, Masdar City, TwoFour54, ​Hamriya Free Zone Authority, USA Regional Trade Center Free Zone, ​Sharjah Airport Free Zone Authority, Ajman Free Zone Authority, Umm Al Quwain Free Zone Authority, RAK Investment Authority Free Zone, RAK Maritime City​, Ras Al Khaimah Free Trade Zone, Ras Al Khaimah Media Free Zone, RAK Economic Zone - RAKEZ, Creative City Fujairah, Fujairah Free Zone Authority, International Free Zone Authority - IFZA
logo of the gupta accountants, dubai
"WE AT GUPTA ACCOUNTANTS, ASSIST IN THE TIMELY AND CORRECT OBLIGATORY COMPLIANCES BY YOUR BUSINESS BASED IN UAE AND ADD VALUE BY REDUCING THE COST OF NON- COMPLIANCE​"
HEAD OFFICE 
PO Box 123 383 Dubai UAE 
T: +971 4 396 7982 
M: +971 55 9893299 
​E:  info@guptaaccountants.com 

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  • HOME
  • ABOUT US
    • GUPTA ACCOUNTANTS
    • MANAGEMENT
    • UNITED ARAB EMIRATES
  • SERVICES
    • ACCOUNTING >
      • Accounting Dubai
      • Accounting Abu Dhabi
      • Accounting Sharjah
      • Accounting RAK
      • Accounting Fujairah
      • Accounting Ajman
      • Accounting UAQ
    • AUDIT COMPLIANCE >
      • Audit Dubai
      • Audit Sharjah
      • Audit RAK
      • Audit AD
      • Audit Ajman
      • Audit Fujairah
      • Audit UAQ
    • AUDIT INTERNAL >
      • Review Dubai
      • Review AD
      • Review Sharjah
      • Review RAK
      • Review Ajman
      • Review Fujairah
      • Review UAQ
    • VAT REGISTRATION >
      • Registration Dubai
      • Registration AD
      • Registration Sharjah
      • Registration Ajman
      • Registration Fujairah
      • Registration RAK
      • Registration UAQ
    • VAT DEREGISTRATION >
      • Deregistration Dubai
      • Deregistration AD
      • Deregistration Sharjah
      • Deregistration RAK
      • Deregistration Ajman
      • Deregistration Fujairah
      • Deregistration UAQ
    • VAT COMPLIANCE >
      • Compliance Dubai
      • Compliance AD
      • Compliance Sharjah
      • Compliance Ras Al Khaimah
      • Compliance Fujairah
      • Compliance Ajman
      • Compliance Umm Al Quwain
    • VAT CONSULTING >
      • Consulting Dubai
      • Consulting AD
      • Consulting Sharjah
      • Consulting RAK
      • Consulting Fujairah
      • Consulting Ajman
      • Consulting UAQ
    • VAT REFUND >
      • Refund Dubai
      • Refund AD
      • Refund Sharjah
      • Refund RAK
      • Refund Ajman
      • Refund Fujairah
      • Refund UAQ
    • VAT VDS >
      • VDS Dubai
      • VDS AD
      • VDS Sharjah
      • VDS RAK
      • VDS Ajman
      • VDS Fujairah
      • VDS UAQ
    • VAT AUDIT >
      • VAT Audit Dubai
      • VAT Audit AD
      • VAT Audit Sharjah
      • VAT Audit RAK
      • VAT Audit Ajman
      • VAT Audit Fujairah
      • VAT Audit UAQ
    • ESR COMPLIANCE >
      • ESR Dubai
      • ESR Sharjah
      • ESR RAK
      • ESR AD
      • ESR Ajman
      • ESR Fujairah
      • ESR UAQ
    • UBO COMPLIANCE >
      • UBO DUBAI
      • UBO AD
      • UBO SHARJAH
      • UBO RAK
      • UBO AJMAN
      • UBO FUJAIRAH
      • UBO UAQ
    • UAE AML COMPLIANCE >
      • AML DUBAI
      • AML ABU DHABI
      • AML SHARJAH
      • AML AJMAN
      • AML RAS AL KHAIMAH
      • AML UAQ
      • AML FUJAIRAH
  • CONTACT
  • BLOG
  • Insights
    • VALUE ADDED TAX - UAE >
      • FAQ - How to >
        • How to check TRN validity in UAE
        • How to de-register under VAT in UAE
        • How to apply for VAT registration in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • Supplies not eligible for input tax recovery under VAT in UAE
        • Input VAT Adjustments under Capital Assets Scheme
      • FAQ - Place of Supply >
        • Place of supply of goods under VAT in UAE
        • Place of supply in case of export of goods
        • Place of supply of specific goods
        • Place of supply of services
        • Place of Supply of Certain Transport Services
        • Place of Supply of Services Related to Real Estate
        • Place of Supply of Telecommunication and Electronic Services
        • Place of supply of services in special cases
      • FAQ - Registration >
        • Introduction to VAT Laws in UAE
        • Frequently Used Terms in Indirect Tax System
        • VAT Registration in UAE
        • Who should register under VAT
        • Tax Registration Number (TRN)
        • VAT registration Deadlines in UAE
        • VAT Group Registration
        • VAT Registration Threshold Calculation in UAE
        • Input Tax Recovery under VAT in UAE
        • What is Capital Asset Scheme in UAE VAT ?
    • CORPORATE TAX - UAE >
      • INTRODUCTION OF CORPORATE TAX - UAE
      • Public Consultation Document Issued
    • Due dates