Economic Substances Report

Economic Substances Report The Upcoming UAE Compliance

Economic Substances Report

As part of the annual compliance mandated by the Economic Substance Regulations (ESR), those UAE entities undertaking and earning income from any of the Relevant Activities as per Cabinet Resolution No. 57 of 2020, must meet the Economic Substance (ES) Test requirements and submit an ES Report.


A licensee carrying a relevant activity; and 

Earning relevant income from the relevant activity during the financial year.


Within 12 months from the end of the relevant financial year.

For financial year ending 31 December 2021, no later than 31 December 2022.


AED 50,000 administrative penalty for failure to submit an ES report and meet the ES Test.

AED 400,000 and/or suspension of license for consecutive non-compliance.

Spontaneous exchange of information with the Foreign Competent Authority.


Meet the ES Test requirements and submit an ES Report containing the relevant information and documentation.

Key requirement of the ES Test are the following:

  • Conducting the core income-generating activities (CIGAs) in the UAE.
  • Business to be directed and managed in the UAE.
  • Adequate number of qualified employees, premises, and annual operating expenditures in the UAE.

How can Crowe help you?

  1. Examine and assess whether the Licensee has met the ES Test requirements.
  2. Identify gaps between existing substance and the level of substance required under ESR and advise on remedial measures to ensure fulfillment of ES Test in future.
  3. Assist in the timely submission of the ES Report and the required supporting documents.
  4. Advising on the documentation to be maintained to support any future inquiries from the authorities.

Contact Us

Markus Susilo
Markus Susilo
Partner- Payroll and Indirect Tax
Alessandro Valente
Alessandro Valente
Director - International Tax Service & Transfer Pricing