UAE Cancels Economic Substance Reporting for Post-2022 Financial Years

UAE, 15 October, 2024 : The UAE Ministry of Finance has announced the cancellation of economic substance reporting requirements for companies with financial years ending after 31st December 2022. This follows Cabinet Decision No. (98) of 2024, amending previous provisions related to economic substance requirements.

The change aligns with the UAE’s implementation of its federal corporate tax system. Younis Haji Al Khoori, Under-Secretary of the MoF, stated that the amendment allows businesses to focus on compliance with the corporate tax system, enhancing overall tax efficiency and compliance.

While companies no longer need to submit economic substance reports for post-2022 financial years, they must still fulfill obligations for prior years, respond to regulatory authorities, and pay any penalties imposed by the Federal Tax Authority.

Source : www.zawya.com