The information contained in this document is marketing material and for informational purposes only. The information contained in this document is presented without any warranty or representation as to its accuracy or completeness and all implied representations or warranties of any kind are hereby disclaimed. Recipients of this document, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this document without seeking appropriate professional advice. The provision of the information contained in this document does not establish any express or implied duty or obligation between Citco and any recipient and neither Citco nor any of its shareholders, members, directors, principals or personnel shall be responsible or liable for results arising from the use or reliance of the information contained in this document including, without limitation, any loss (whether direct, indirect, in contract, tort or otherwise) arising from any decision made or action taken by any party in reliance upon the information contained in this document. © The Citco Group Limited, December 2024.
United Arab Emirates – Cancellation of Economic Substance Reporting Requirements
On the 14th of October, the United Arab Emirates’ Ministry of Finance announced the cancellation of Economic Substance Report (ESR) notification and reporting requirements for companies whose financial years end after the 31st of December 2022.
The announcement was made after Cabinet Decision No. 98 0f 2024 and will come into effect upon publication in the Official Gazette.
All fines imposed under the provisions of Cabinet Decision No. 57 for fiscal years that ended after 31 December 2022, will be cancelled.
Any fine paid in relation to a financial year that ended after 31 December 2022 will also be refunded.
Pending clarifications
Further updates are expected on whether ESR notifications and reports for financial year-end 2023 (due by December 31, 2024) will still be required.
This change is part of broader efforts to streamline compliance and enhance the UAE’s reputation as a global business hub.
Find out more about Navigating Entity Management in the UAE.
