Publications

The UAE entered 2025 with a bold and mature phase of tax reform — signaling a clear shift from its traditional offshore model to a transparent, compliance-driven business environment. While the country maintains a business-friendly tax regime, it now demands full alignment with international standards of compliance, transparency, and reporting.

This is a major turning point for international businesses operating in or through the UAE. Former schemes relying on nominee structures, lack of economic substance, or passive Free Zone registrations are becoming obsolete — and in some cases, risky.

Understanding the 2024 Amendments to the UAE Economic Substance Regulations

The recent issuance by the Cabinet of Ministers of Decision No. (98) of 2024 introduces pivotal amendments to the United Arab Emirates (UAE) Economic Substance Regulations (ESR). These updates amend specific provisions under Decision No. (57) of 2020, reflecting significant developments in the regulatory landscape for UAE businesses. These modifications, particularly pertinent in light of the Federal UAE Corporate Tax (CT) Law, offer substantial relief to enterprises across the Emirates.

In February 2023 the Dubai Virtual Asset Regulatory Authority (VARA) has released a long-waited set of regulations which outlined a framework for crypto business to exist and operate in the UAE. The said regulations will apply to entities and activities within the emirate of Dubai.

In our previous article, we mentioned that the Ministry of Finance announced a 9% federal corporate tax (CT) on a company’s profit. CT will come into force from 1st June 2023. In this article, we would like to elaborate on the mechanism of a Corporate Tax more thoroughly.