New regulations have been issued in Cabinet of Ministers Resolution No. 31 of 2019, dated 30 April 2019. They introduced a legal requirement for all UAE entities to locally maintain ‘economic substance’ in line with the level and type of activity they undertake.
WHICH ENTITIES ARE IN SCOPE?
Any UAE entity that undertakes “Relevant Activities” which consist of any of the following businesses licensed in the UAE (mainland and/or free trade zones):
— Investment fund management
— Lease finance
— Holding company
— Intellectual property
— Distribution and service centers
WHAT NEEDS TO BE DONE & WHO NEEDS TO BE FILED?
• Notification submission
i) Any UAE entity needs to submit a notification which undertakes above “Relevant Activities”.
ii) Free Zone companies still need to submit notification, irrespective of whether your company falls into the above category or not.
• Return submission
i) Any UAE entity & Free zone companies need to submit the return which undertakes above “Relevant Activities”
ARE YOU READY?
• Does your UAE entity (company or a branch) fall under these rules?
• What compliance obligation does it have?
• Can your UAE entity satisfy the economic substance test?
HOW FINANCIAL CUBE CAN HELP?
If you haven’t yet considered the impact of the UAE Economic Substance Regulations on your company/ branch in the UAE and require any of the below:
• Assessment on whether you fall within the rules
• Assessment on whether you can satisfy the Economic Substance test
• Notification filing assistance & Return submission assistance
Our experienced team will be happy to analyze your business activities, determine whether you are within the rules and guide you as to what actions are required to ensure full compliance.
For further information, please click here to contact us.