The Economic Substance Regulations (ESR) were introduced in 2019 (Cabinet Decision No. 31/2019) with the aim of ensuring that businesses which perform so-called geographically mobile activities have economic substance in the jurisdiction where its income is being reported. This means that businesses will need to demonstrate that the income generated (and profits reported) in the UAE adequately correspond with the economic activities actually undertaken in the UAE (Economic Substance).

The first year of reporting under the ESR is 2019 and all UAE based companies, branches and other commercial license holders (together referred to as Licensees), including those in the Media Zone, must now start reporting under these regulations.