Sharjah Publishing City Circular No. 1/2020

Economic Substance Regulation in the United Arab Emirates

Subject: Economic Substance Regulation in the United Arab Emirates

The Economic Substance Regulation (Cabinet Decision No. 31/2019, the “Regulations”) was introduced by the United Arab Emirates in coordination with the Ministry of Finance on 30 April 2019. The Regulations is in response to an assessment of the UAE's tax framework by the European Union Code of Conduct Group on Business Taxation and as part of the UAE's commitment as a member of the OECD Inclusive Framework.

Relevant Activities Notifications

The Regulations require all licensees to notify if the licensee is carrying on one or more of the following Relevant Activities. The Relevant Activities as set out under Article 4 of the above said Resolution are:

  • Banking Businesses

  • Insurance Businesses

  • Investment Fund Management Businesses

  • Lease-Finance Businesses

  • Headquarters Businesses

  • Shipping Businesses

  • Holding Company Businesses

  • Intellectual Property Businesses

  • Distribution and Service Centres Businesses

Notification template is attached herewith. Also available through our website www.spcfz.com to view and download, please click here

Please submit the notification by 30 June 2020 to services@spcfz.com