UAE: New Resolution on Economic Substance Requirements in the United Arab Emirates
On 30 April 2019, the Cabinet of the United Arab Emirate (UAE) issued a Resolution regarding the economic substance requirements for mainland and free zone entities in the UAE (Resolu-tion No. 31 of 2019). The Resolution can be seen as a response to the UAE having been (re)added to the EU’s tax haven blacklist in March 2019 after missing a 31 December 2018 deadline for passing economic substance requirements. UAE companies will need to assess whether they are eligible to meet the criteria of the Resolution. This legal briefing provides an overview of the implications of the new economic substance legislation in the UAE.