UAE announces details of economic substance regulations

UAE announces details of economic substance regulations

ABU DHABI - The Ministry of Finance, MoF, announced today the details of the Cabinet Resolution No. (57) of 2020 concerning Economic Substance Regulations, ESR.The Resolution was issued in consultation with the Organisation for Economic Cooperation and Development, OECD, and the European Union Code of Conduct Group, in order to direct companies that engage in one or more relevant activities.Younis Haji Al Khoori, Under-Secretary of MoF, noted that any company that is subject to the economic substance regulations must adhere to the resolution's provisions."This resolution resulted from constructive consultations undertaken by the UAE with its partners in the European Union and the OECD. This reaffirms the UAE's commitment to adhere to tax policies, apply international taxation standards, and address tax evasion," he added.Under this resolution, the Federal Tax Authority, FTA,