Click here to see our newly released guidance:

• Update: Background Introduction of Economic Substance Regulations in the UAE

• Ministry of Finance: Update on UAE Economic Substance Regulations

The ESR is applicable to all-natural and juridical persons carrying out Relevant Activities (RA) in the UAE including Free Zone and Financial Free Zone. Following the intention behind introducing the ESR and following the law in its spirit, it is interpreted that Offshore companies are included in the Free Zone companies. This stand has been clarified by the Ministry of Finance (MOF) in the Frequently Asked Questions.

Companies in which the Federal Government or the Government of any Emirate of the UAE or any governmental authority or body of any of them has at least 51% direct or indirect ownership in its shareholding are not subject to the ESR.