The United Arab Emirates is implementing the Economic Substance Regulations on local companies operating within the UAE, as well as companies registered in free zones that engage in any activity falling under the Economic Substance Regulations.
The aim of these regulations is to register all different economic activities and determine their compliance with licensed activities, as well as to ensure compliance with regulations and necessary legislation.
These regulations are part of the UAE government’s efforts to promote transparency and economic prudence, and to improve the business environment in the country.
The economic activities that fall under the Economic Substance Regulations
The Economic Substance Regulations apply to business activities falling under the following sectors, according to data released by the Ministry of Economy:
Notification of Economic Substance Regulations activities
Companies and establishments engaged in relevant activities in the UAE are required to submit annual notifications and reports on Economic Substance Regulations activities to the regulatory authority.
The objective of implementing the Real Economic Activities system
The application of Real Economic Activities Systems in the UAE aims to enhance transparency and improve the business environment in the country. It also helps to combat money laundering, terrorist financing, and other financial crimes. Additionally, the application of these systems contributes to building trust in the UAE’s economy and encourages investment in the country.
Furthermore, regulatory authorities in the UAE, in cooperation with financial and commercial institutions, work to raise awareness of the importance of applying these systems and provide the necessary support to achieve them. What sets the application of these systems in the UAE apart is its flexibility and adaptation to current financial and economic developments, as regulatory authorities continuously update these systems to align with current requirements.
Moreover, these systems contribute to improving the business environment in the UAE by promoting transparency and accountability and helping to reduce commercial fraud, deception, and market manipulation. This makes the UAE a preferred destination for investment and business opportunities.
Overall, the application of Real Economic Activities Systems in the UAE is a positive and vital step in enhancing the local economy, promoting healthy competition among companies, and improving the business environment in the country. Thanks to these systems, investors and businesspeople can invest in the UAE with confidence and security, driving further development and prosperity for the local economy.
AHG is a leading regional audit and legal accounting firm operating in the Gulf Cooperation Council (GCC) and North Africa. Since 2014, AHG has helped companies operating in the United Arab Emirates (UAE) achieve maximum success. We are fully prepared to assist your business in the UAE with a team of trained tax experts to prepare your business for corporate tax in the UAE.
AHG-Dubai serves a wide range of multinational clients and companies. This comes in light of the company’s strategy to focus on two core pillars: geographical expansion into border markets and leading a positive community culture. By combining our strengths and experiences in the region, we offer our clients the best services in their category designed to maximize their investment goals in a rapidly changing environment.