The United Arab Emirates Cabinet has issued a Cabinet Resolution no (58) of 2020 in relation to Ultimate beneficial Ownership. It came into force on 28 August 2020. This regulation was brought into force in order to enhance corporate transparency.
This resolution is applicable to all entities that are registered in the UAE mainland and free zones.
As part of the UAE’s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE’s tax framework by the European Union (“EU”) Code of Conduct Group on Business Taxation, the UAE introduced a Resolution on the Economic Substance (Cabinet of Ministers Resolution No.31 of 2019, the “Regulations”) on 30 April 2019.
The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the “Relevant Activities” to maintain an adequate “economic presence” in the UAE relative to the activities they undertake.
List of “Relevant Activities”
