The UAE introduced a Resolution on the Economic Substance (UAE Cabinet Resolution No. 31/2019, as amended, concerning economic substance regulations in the UAE; guidance released by the Ministry of Finance pursuant to Ministerial Decision No. 215/2019; and Cabinet Resolution No. 58/2019, which designates the appropriate UAE authorities to regulate compliance under these regulations, collectively, referred to as the â€œEconomic Substance Regulationsâ€ ) on 30 April 2019, as part of the UAEâ€™s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAEâ€™s tax framework by the European Union (â€œEUâ€) Code of Conduct Group on Business Taxation.
The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the â€œRelevant Activitiesâ€ listed below to maintain an adequate â€œeconomic presenceâ€ in the UAE relative to the activities they undertake.