The UAE Cabinet recently issued resolution Number 31 of 2019
(the Resolution). The Resolution concerns with regulations for
economic substances in the United Arab Emirates. These regulations
make it necessary for some companies to determine that they possess
any effective substance in the country. This is done by fulfilling
certain tests related to the relevant activities that are mentioned
in the regulations.
It was in November 2018 that the Organisation for Economic
Cooperation and Development (the OECD)
announced the international standards for Base Erosion and Profit
Shifting (BEPS). These regulations make a
framework for preventing the relocation of business activities
which has applicability to the preferential regimes for the
geographically mobile incomes.
