Tax Residency Certificate Dubai, UAE

Understanding Economic Substance Regulations (ESR) in Dubai, UAE

The Economic Substance Regulations (ESR) were introduced in the UAE to ensure that businesses with relevant activities have substantial operations and presence in the country. These regulations are aligned with global standards set by the OECD and the European Union to prevent harmful tax practices.

If your company falls under the ESR scope, you must demonstrate real economic activities and comply with reporting requirements. Alamtar helps businesses in identifying whether they fall under ESR, preparing required documentation, and ensuring compliance with all legal obligations.

Who Needs to Comply with ESR in UAE?

Entities carrying out the following Relevant Activities must comply with ESR:

  • Banking
  • Insurance
  • Investment fund management
  • Lease-finance
  • Headquarters business
  • Shipping
  • Holding company business
  • Intellectual property business
  • Distribution and service center business

Key ESR Requirements

  • Economic Substance Notification submission
  • ESR Report submission (if applicable)
  • Demonstrate adequate:
  • Core Income-Generating Activities (CIGA)
  • Qualified employees, premises, and expenditure
  • Maintain auditable documentation and evidence of operations

Penalties for Non-Compliance

Failure to comply with ESR can lead to:

  • Financial penalties (ranging from AED 20,000 to AED 400,000)
  • Exchange of information with foreign competent authorities
  • Suspension or revocation of business licenses

How Alamtar Can Help You

Let Alamtar take care of your ESR obligations so you can focus on your business. Contact our team today for expert guidance.

CONTACT US

Let’s Talk Numbers — We’re Here to Help