UAE, 20 December, 2024 : The UAE Ministry of Finance has announced the cancellation of economic substance reporting requirements for financial years ending after 31 December 2022. This follows Cabinet Decision No. (98) of 2024, amending provisions of Cabinet Decision No. (57) of 2020.
The amendment aligns with the UAE’s federal corporate tax system on business profits. His Excellency Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, highlighted that removing these requirements allows businesses to focus on corporate tax compliance, enhancing efficiency and attracting investments.
While the new rules relieve companies from submitting economic substance reports for financial years ending after 31 December 2022, compliance obligations for prior years remain. Entities must respond to regulatory and Federal Tax Authority (FTA) requests and address any penalties from the FTA.
Source : www.mof.gov.ae
