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REGULATORY & OTHER TAX SERVICES

Economic Substance Regulations (ESR)

Professional, accurate, and FTA-compliant solutions optimized specifically for your Economic Substance Regulations (ESR) requirements in the UAE.

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Economic Substance Regulations (ESR)

The UAE introduced Economic Substance Regulations (ESR) to prevent base erosion and profit shifting. Fincore navigates this complex legislation, ensuring your business demonstrates adequate 'substance' relative to the income it generates.

We determine if your activities fall within the scope of ESR, assist in demonstrating that core income-generating activities occur within the UAE, and manage the mandatory annual notifications and detailed report filings.

ESR Compliance & Strategy

Proving the economic reality of your UAE operations.

01

ESR Applicability Assessment

Analyzing your financial statements and operations to definitively determine if you undertake any of the nine 'Relevant Activities' defined by the law.

02

Substance Test Gap Analysis

Reviewing your current operations (board meetings, employee headcount, operating expenses) against the ESR requirements to identify compliance gaps.

03

Annual Notification Filing

Preparing and submitting the mandatory annual ESR Notification via the Ministry of Finance (MoF) portal within the strict regulatory deadlines.

04

Detailed ESR Report Filing

Compiling and submitting the comprehensive annual ESR Report, providing the necessary financial and operational evidence to the Regulatory Authority.

ESR Deliverables

Definitive proof of compliance.

ESR Applicability & Gap Assessment Memo.
Submitted MoF ESR Notification.
Submitted MoF ESR Final Report.

ESR FAQs

Find answers to the most common questions about our Economic Substance Regulations (ESR) services in the UAE.

What are the 'Relevant Activities' under ESR?+
There are nine: Banking, Insurance, Investment Fund Management, Lease-Finance, Headquarters, Shipping, Holding Company, Intellectual Property, and Distribution & Service Centre businesses.
What happens if we fail the Economic Substance Test?+
Failures can result in significant administrative penalties (up to AED 400,000 for repeated offenses), information exchange with foreign tax authorities, and potential suspension or revocation of your trade license.
Do Holding Companies need to comply?+
Yes, 'Holding Company Business' is a Relevant Activity. However, pure equity holding companies are subject to a reduced substance test compared to other activities.
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