Economic Substance Notification

As part of the UAE’s commitment as a member of the Organisation for Economic Co-operation and Development (OECD) Inclusive framework, and in the response of an assessment of the UAE’s Tax framework by European Union (EU) Code of Conduct Group on Business Taxation, a Resolution has been issued on the Economic Substance (Cabinet of Ministers Resolution No. 31 of 2019) on the 30th of April 2019.

Whilst NIP is continuing to seek further guidance and direction from the Ministry of Finance in respect to the effect on member companies during the COVID-19 pandemic. As per the guidance from the Ministry of Finance, it is required for each NIP company registered or licensed to provide an annual declaration of conducting any relevant activities in the preceding financial year.

The guidance of how this process will be undertaken was provided in April 2020.

Relevant Activities Guide:
https://www.mof.gov.ae/en/strategicpartnerships/pages/esr.aspx

• Economic Substance Regulations FAQs;
https://www.mof.gov.ae/en/StrategicPartnerships/Pages/ESR.aspx

Please download the Annual Economic Substance Notification Form User Guide in the attachment section below.