The UAE has been implementing various regulations, including VAT, AML, to streamline the economy as per global standards and the latest in this series is the UAE Economic Substance Regulations (ESR). As per the ESR, the companies in the UAE are required to demonstrate the economic substance in the relevant activities they carry out within the UAE. The companies need to first notify the regulators whether they carry out the relevant activities as per the ESR or not and then follow it up with the requirements for the UAE economic substance test and file ESR report.
The businesses that are within the scope of the UAE ESR, must prepare themselves to implement strategies for the annual UAE ESR notification and reporting. They must also need to satisfy the requirements for the UAE Economic Substance Test for which professional guidance of reputed ESR services firms in Dubai, UAE can be availed. The companies are still in dark over the requirements for satisfying the Economic Substance Test and this article is a comprehensive guide on the ESR Test Requirements.