The UAE has recently issued updated Economic Substance
Regulations which repeal and replace those announced in April 2019.
The updated regulations introduce important changes to the economic
substance regime that businesses operating in the UAE should be
aware of.
Background
Economic Substance Regulations (ESR) were
introduced in the UAE with effect from 30 April 20191.
The UAE Cabinet of Ministers has now issued updated Economic
Substance Regulations (Updated ESR)2
which repeal and replace the ESR. The UAE Ministry of Finance has
also issued updated guidance (New
Guidance)3 clarifying the Updated ESR.
Key Takeaways and Next Steps
- The Updated ESR overrides the ESR.
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