Economic Substance Regulations (ESR): Who Qualifies and What You Get
Learn how the ESR portal helps businesses in the UAE stay compliant and avoid international tax blacklisting through annual filings.
The Economic Substance Regulations (ESR) is a framework designed to ensure that businesses conducting certain activities in the United Arab Emirates demonstrate a genuine presence and economic activity within the country.
Who it's for
This applies to licensees that are carrying out specific relevant activities within the United Arab Emirates.
What you get
By using this framework, businesses can maintain compliance with international standards, which helps the country avoid being placed on international tax blacklists.
What it costs you
You are required to complete an annual notification filing. This process involves providing detailed financial reporting to show your business activity.
The catch to know
Even if your business has earned no income during the year, you are still required to file a notification if you performed any relevant activities.
How to apply
- Determine if your business activities fall under the relevant categories.
- Prepare your detailed financial reports for the year.
- Log in to the official portal to complete your annual notification.
- Submit your filing through the official site: https://esr.mof.gov.ae