News: UAE Publishes Requirements for Economic Substance

The UAE Ministry of Finance has published a document, which contains the requirements for economic substance in the jurisdiction. Now, the companies will have to submit documents to prove their economic substance using a special portal. The portal will be launched approximately until December 7, 2020. The companies will be able to submit documents until December 31, 2020.

The new document contains the rules for filing documents, which carry out the Relevant Activities. From January 1, 2021, all documentation on the confirmation of economic substance will be submitted only in electronic format. The registration on the electronic portal will become available immediately after the launch of the service for filing documents.

The companies will be required to send notices of economic substance no later than 6 months after the end of financial year. If the legal entity has already sent the relevant documents, it will have to be done again after the electronic portal is launched. If the company fails to comply with the requirements of UAE government, it can be fined up to 20,000 dirhams (approximately 5,450 USD).

Law & Trust offers its services for the clients working in the UAE. Our lawyers will tell you how to properly submit documents through the new electronic service, and help to prepare documentation to confirm your economic substance.