Economic Substance Regulation (ESR) Compliance Services in the UAE
The United Arab Emirates (UAE) has implemented the Economic Substance Regulations on April 30th, 2019. These regulations mandate that companies must engage in substantial activities within the UAE, aligning with the global standards established by the OECD and the EU to promote fair business taxation, prevent harmful tax practices, and avoid being listed as a non-cooperative tax nation by the EU.
Streamline your compliance with our comprehensive ESR services. From precise classification and meticulous reporting to tailored strategies and vigilant monitoring, we guide your business through the intricacies of Economic Substance Regulations. Your compliance journey simplified with us by your side.
The ESR framework establishes specific criteria for companies to demonstrate genuine economic activity within the UAE, preventing them from simply seeking tax advantages in jurisdictions with low or no taxation. This initiative curbs the undesirable practice of shifting profits from high-tax regions to low-tax havens.
The Economic Substance Regulations introduce specific requirements for businesses to demonstrate their actual economic activity in the UAE, ensuring that they are not merely seeking to benefit from a low or non-tax jurisdiction. This measure aims to prevent the harmful tax practice of shifting profits from high-tax jurisdictions to low-tax regimes.
On August 10th, 2020, the UAE introduced the New Economic Substance Regulation through Cabinet of Ministerial Resolution no 57 of 2020 concerning Economic Substance Requirements. Additionally, Ministerial Decision no 100 of 2020 repealed and replaced the Erstwhile Regulations and their associated laws. As a result, entities are now required to comply with the Amended Regulations.
Our ESR Compliance Services:
ESR Classification and Assessment: Our ESR experts evaluate your business activities to ascertain their relevance to the ESR framework. We gauge the extent of economic substance required and provide guidance throughout the compliance process.
ESR Reporting and Notification: We handle the complete spectrum of ESR reporting and notifications to the appropriate regulatory authorities. Our team ensures punctual and precise submissions, relieving you of the compliance burden.
ESR Compliance Strategy: Given the distinctiveness of each business, our ESR compliance strategies are meticulously tailored to match your individual prerequisites. We devise comprehensive compliance plans that align seamlessly with your industry, structure, and operational demands.
Record-Keeping and Documentation: Our ESR experts evaluate your business activities to ascertain their relevance to the ESR framework. We gauge the extent of economic substance required and provide guidance throughout the compliance process.
Proactive Compliance Monitoring: Our ESR experts evaluate your business activities to ascertain their relevance to the ESR framework. We gauge the extent of economic substance required and provide guidance throughout the compliance process.
Why Choose DgTx:
ESR Compliance Experts: Our team of ESR compliance experts has an in-depth understanding of the ESR regulations and their implications for businesses in the UAE. You can rely on our knowledge to navigate the complexities of ESR compliance seamlessly.
Tailored Solutions: We recognize that one size does not fit all when it comes to ESR compliance. Our services are tailored to fit your business’s unique requirements, ensuring a practical and efficient compliance process.
Timely and Precise Execution: We prioritize timeliness and accuracy in all our operations. Our team ensures that your ESR reporting and compliance activities are carried out promptly and precisely.
Confidentiality and Trust: We treat your business information with the utmost confidentiality and adhere to strict ethical standards. You can trust us to maintain the confidentiality of all sensitive data.
Stay Compliant with ESR: Navigating the Economic Substance Regulation can be complex, but with DgTx by your side, you can ensure seamless compliance and peace of mind. Contact us today to benefit from our expert ESR Compliance Services and stay aligned with international tax standards.