Economic Substance Regulation

Is your business compliant with UAE Economic Substance Regulations (ESR)?
Enacted in 2019, ESR ensures that UAE-based entities conducting certain Relevant Activities have substantial operations in the country — in line with OECD and EU tax standards.

Relevant Activities include:
📌 Banking • Insurance • Investment Fund Management
📌 Lease-Finance • Shipping • Holding Companies
📌 Intellectual Property • Headquarters Business

To meet ESR requirements, your entity must:
✔ Conduct Core Income Generating Activities (CIGA) in the UAE
✔ Be managed and directed from the UAE
✔ Maintain adequate employees, premises, and expenses locally

Non-compliance Penalties:

❗ Fines from AED 10,000 up to AED 300,000 ❗

BSTC can help you with:
✅ ESR Assessment & Classification
✅ ESR Notification Filing
✅ ESR Report Preparation & Submission

Need expert help with ESR in the UAE?
Contact Black Stone Tax Consultancy today.