Economic Substance Regulations (ESR)
Our diverse team of experts helps you comply with the new Economic Substance Regulations (ESR) requirements to review the economic substance and legitimate business activities of your business in the UAE more effectively.
The government of UAE implemented Economic Substance Regulations (ESR) compliance requirements in 2019 to review entities incorporated in the UAE, whether they have a legitimate business activity or operations in the UAE or take tax advantage of the country and divert their profits to other jurisdictions.
Thus, ESR through relevant test and reportings proves that your business has genuine activities and operations happening in the UAE. The process of proving ESR is in three stages
- UAE Economic Substance Notification
- UAE Economic Substance Test
- UAE Economic Substance Reporting
We help you carry out the ESR test and reporting smoothly by incorporating effective methods that will help you meet the requirements of the regulations accurately.
How TCA Can Help?
Simplification of Complex Processes
The economic substance regulations compliance in UAE requires onshore, free zone, and financial free zone companies to demonstrate adequate economic substance in the relevant activities they carry out in the UAE, which can be complicated.
Accurate Reporting
Companies in the UAE must notify the regulatory authority and submit an annual report to ensure that the business meets the UAE Economic Substance Test requirements, which should be accurate.
Educating About Fines and Penalties
Because it is a new regulation, companies may fail to comply with the standards and provide inaccurate or incomplete information, which may lead to substantial penalties. We help you stay away from penalties and fines by accurately reporting the true facts.
Assistance for ESR Audit
In the event of an economic substance regulations audit, our team can assist you in comprehending the technicalities involved in the information requested by the FTA and guide you throughout the audit.
Ensures Full ESR Compliance
Our specialized TCA team helps you navigate the ESR requirements to ensure full compliance.