The 4 UAE laws, decisions and regulations on economic substance in the Polaris Legal Library, each summarised from the official text with status, key provisions and penalties.
Cabinet Decision No. 98 of 2024 Amending Certain Provisions of Cabinet Decision No. 57 of 2020 Concerning Economic Substance Requirements
Amends the Economic Substance Regulations so that notification and reporting requirements no longer apply to financial years ending after 31 December 2022; according to the Ministry of Finance announcement, companies remain liable for penalties the FTA imposed for earlier years. The Ministry has published the announcement but not the decision text.
Cabinet of Ministers Resolution No. 57 of 2020 Concerning Economic Substance Requirements
Requires UAE licensees carrying on nine Relevant Activities (banking, insurance, fund management, lease-finance, headquarters, shipping, holding company, intellectual property, distribution and service centre) to meet an economic substance test and file an annual notification and report within 12 months of year end, for financial years from 1 January 2019; replaced Cabinet Resolutions No. 31 and No. 58 of 2019.
Ministerial Decision No. 100 of 2020 on the Issuance of Directives for the Implementation of the Provisions of the Cabinet Decision No. 57 of 2020 Concerning Economic Substance Requirements
Issues the binding guidance for applying the Economic Substance Regulations: which entities and activities are covered, how the directed-and-managed test, core income-generating activities and outsourcing rules work, when a licensee is exempt, and a schedule explaining each Relevant Activity; repeals and supersedes Ministerial Decision No. 215 of 2019.
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