The UAE cabinet issued economic substance regulations which require UAE entities carrying out one or more “Relevant Activities” to substantiate adequate economic substance in the UAE and report actual profits that are commensurate with the economic activity undertaken within the UAE.
What are the Relevant Activities?
- Banking activities
- Insurance activities
- Fund management activities
- Financing or leasing activities
- Headquarters activities
- Shipping activities
- Holding companies
- Intellectual property (“IP”) holding or exploitation
- Distribution of goods purchased from foreign connected persons
- Provision of services to foreign connected persons
The law requires onshore and free zone companies (referred to as ‘licensees’) carrying out a relevant activity to file a notification (within 6 months from the end of reporting period), and a report (within 12 months from the end of the reporting period).
We at Evas International, assist you in fulfilling these legal requirements, as well as ensure future compliance by providing the below services: