Economic Substance Regulation (ESR) Services

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.

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 Additionally, Ministerial Decision no 100 of 2020 repealed and replaced the Erstwhile Regulations and their associated laws.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 specialists analyze your business activities to determine if they fall under the scope of the ESR. We assess the level of economic substance your business requires and guide you through the compliance process.

ESR Reporting and Notification: We handle all aspects of ESR reporting and notification to the relevant regulatory authorities. Our team ensures accurate and timely submissions, eliminating the burden of compliance from your shoulders.

ESR Compliance Strategy: Every business is unique, and our ESR compliance strategies are tailored to suit your specific needs. We design comprehensive compliance plans to align with your industry, structure, and operational requirements.

Record-Keeping and Documentation:  Complying with the ESR involves maintaining detailed records and documentation. We assist in establishing robust record-keeping processes, ensuring that all necessary information is readily available for reporting.

Proactive Compliance Monitoring:  Our proactive approach helps you stay on top of changing ESR regulations and requirements. We provide regular updates, ensuring your business remains compliant as regulations evolve.

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.