The Relevant Activities assessment is what determines whether your business is subject to the Economic Substance Regulations (ESR). The purpose of the Regulations is to ensure that UAE entities undertaking certain activities report actual profits that are commensurate with the economic activity undertaken within the UAE. Businesses must use a ‘Substance over form’ approach to examine their activities beyond what is stated in the business license to the actual activities carried out, according to the ESR guidance and regulations issued by the ministry of finance. Below is a summary that would help you understand the Relevant Activities and to identify if your business performed such activities.
