Cabinet Decision No. 100 of 2023 on Determining Qualifying Income

Qualifying Free Zone Person for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

The Cabinet

Qualifying Activities

Excluded Activities

Patents

Copyrighted Software

Commercial Property

Designated Zone

Kickstart Your Journey with a Free Consultation

Frequently Asked Questions

Q.1 What are the Economic Substance Regulations (ESR) in Dubai?

The ESR is a set of regulations that require entities engaged in specific business activities to have substantial economic presence and operations in the UAE.

Q.2 Which entities are subject to the ESR?

Entities that conduct specific activities, such as banking, insurance, fund management, and lease-finance, are subject to the ESR. The regulations may also apply to companies engaged in certain high-risk intellectual property (IP) activities.

Q.3 What is the purpose of the ESR?

The primary purpose of the ESR is to ensure that entities engaged in relevant activities have substantial operations in the UAE, thereby preventing profit shifting and tax avoidance.

Q.4 What is considered "substantial activities" under the ESR?

Substantial activities generally involve having adequate people, premises, and operating expenses in the UAE. The specific requirements can vary based on the type of activity.

Q.5 How does the ESR affect my business?

If your business conducts relevant activities, you will need to ensure that it meets the substantial activities criteria, maintains proper records, and reports its compliance to the relevant authorities.

Q.6 What are the reporting requirements under the ESR?

Entities subject to the ESR must submit annual reports to the Regulatory Authority, outlining various aspects of their business activities, financial information, and compliance with the substantial presence requirements.

Q.7 What are the penalties for non-compliance with the ESR?

Non-compliance with the ESR can result in penalties, including fines, suspension, or even the revocation of the entity's license.

Q.8 Is there a threshold for revenue or profit under the ESR?

The ESR does not specify a particular threshold for revenue or profit. Instead, it focuses on the substance of the business activities and operations in the UAE.

Q.9 Are there any exemptions or exceptions under the ESR in UAE?

There are specific exemptions and exceptions outlined in the ESR regulations. These may apply in certain cases, such as where an entity is tax resident in another jurisdiction.

Q.10 Where can I find more information and guidance on the ESR?

You can find detailed guidance and information on the ESR on the website of the UAE Ministry of Finance, as well as by consulting with legal and tax advisors with expertise in UAE regulations.

Begin Your ESR Adventure with a Free Consultation

What Our Customers Says

      EXCELLENT  
   Based on 46 reviews 
    
 
 
 
   
 
 
       Posted on Google  
   
   Raheel A Khalid 
 
 
 
 Trustindex verifies that the original source of the review is Google. High quality and professional Audit firms
  
 
      Posted on Google  
   
   Sameeta Rajpal 
 
 
 
 Trustindex verifies that the original source of the review is Google. I would rate BSA auditing of accounts as a strong auditing company in dubai to be associated with. Kalim runs a strong ship, has the best talent pool on his side and the firm offers great “value for money” and beyond when they are onboarded for a project, thorough professionals and they maintain a solid bond with the clients, with excellent follow ups.
  
 
      Posted on Google  
   
   Faisal Shahzad 
 
 
 
 Trustindex verifies that the original source of the review is Google. My retail business is located in Sharjah and I was looking for audit firms in Sharjah for having internal and external audit of my accounts done. An acquaintance recommended to get in touch with BSA, and to my surprise they had a presence in my city, their team was in my office instantaneously, we went through the project scope and they got to work. I am so impressed by the quality of audit they conducted. They have become my go to people for all advices.
  
 
      Posted on Google  
   
   Jude James Mensah 
 
 
 
 Trustindex verifies that the original source of the review is Google. I would recommend BSA as one of the best accounting firms dubai mostly because of the innovative solutions and services they are offering, their understanding of smaller businesses such as mine is great and the issues we face. Their thorough research and providing solutions that make sense is something that I will always need as a growing business.
  
 
      Posted on Google  
   
   chinenyenwa Onyeuwaoma 
 
 
 
 Trustindex verifies that the original source of the review is Google. Badger Saleh Auditing is a good company with experienced staff
  
 
      Posted on Google  
   
   Patrick TV Gh 
 
 
 
 Trustindex verifies that the original source of the review is Google. For their auditing of accounts dubai based businesses need strong finance resources who understand policies, laws and compliances according to the country. I have worked with BSA on company incorporation and I can vouch that they know the business and legal environment of the country better than others, they were of great help to me in setting up a legitimate and compliant business, loved doing business with them
  
 
      Posted on Google  
   
   Mirabel Okine 
 
 
 
 Trustindex verifies that the original source of the review is Google. I was hunting for a chartered accountant or chartered accountant firms in dubai and was recommend BSA for getting advice regarding my retail business setup. Their business management consultancy team did wonders streamlining my payroll and financial processes, training my staff and guiding me on various business growth strategies. I look to them now whenever I have a complex business need which needs an effective solution.
  
 
      Posted on Google  
   
   Francisca Boamah 
 
 
 
 Trustindex verifies that the original source of the review is Google. I love it