Previously, entities involved in various "relevant activities," such as banking, shipping, lease finance, and investment fund management, were required to file ESR reports to demonstrate that they had sufficient economic substance within the UAE. With this new directive, many of these companies are now exempt from filing such reports, allowing them to focus more on their core activities​

.Additionally, penalties imposed for non-compliance with ESR filings in 2023 are being refunded, offering further financial relief to affected businesses​

This regulatory shift is particularly advantageous for shipping companies and freight operators who can now direct their resources towards providing services like international freight shipping, auto transport, and offering competitive freight shipping quotes without the burden of ESR compliance​

Although ESR filings are no longer mandatory, companies must still ensure they meet the substance requirements under the corporate tax regime, especially if they wish to benefit from specific tax incentives. This highlights the ongoing need for businesses to maintain transparent operations and demonstrate adequate economic substance in their activities​

Why Choose UAE Business Advisors?

• Corporate Tax Consultation: With the introduction of a 9% corporate tax on profits exceeding AED 375,000, it is crucial to understand your obligations. Our corporate tax consultants ensure you remain compliant with all inc tax and business tax regulations.
• Efficient Filing Services: Filing your corporate tax return is essential for maintaining good standing. Our services simplify the process of corporate tax filing and allow you to file corporate taxes online, ensuring accuracy and timeliness.
• Economic Substance Regulations: While many companies are relieved from ESR reporting, compliance for previous years is still necessary. We assist you in managing any outstanding obligations related to the economic substance report and help prepare for any inquiries from regulatory authorities​
  

Your Partner in Success

UAE Business Advisors is committed to empowering businesses in the UAE to thrive amidst regulatory changes. Our focus on personalized service and local expertise positions us as the ideal partner in your business journey.

Contact Us Today!

Get in Touch with UAE Business Advisors Ensure your business thrives in this evolving regulatory landscape. Contact UAE Business Advisors today for expert advice on adapting to these new ESR regulations and optimizing your operations for success.

UAE Business Advisors 

Financial Accounting Consulting Services in UAE