The prime aim of the Economic Substance Regulations (New
Regulations) is to provide transparency, uniformity and certainty
in the tax regime so as to mitigate BEPS i.e. base erosion and
profit shifting in an initiative to remove United Arab Emirates
(UAE) from the list of non-cooperative tax jurisdiction/countries
of Organization for Economic Co-operation and Development (OECD)
and European Union (EU).
The New Regulations shall be applicable on all those companies
that conduct economic activities within the UAE. Entities which
either holding an existing trade license as on April 30, 2019 or
would receive trade license after April 30, 2019 shall comply with
New Regulations 2019.
The New Regulations shall be applicable to every United Arab
Emirates onshore and free zone companies indulged in economic
activities such as:
