UAE ESR; Use of Non-Executive Directors to pass ESR Test in UAE

February 24, 2020by Mohammed Rahali0
As seen in Gulf News
Have you set up your company in line with the new UAE economic substance rules? If you have not yet, do it now – because if the looming deadline passes, be prepared to pay a hefty fine!

 

The United Arab Emirates has enacted the ESR on 30th April 2019, which requires companies carrying on relevant activities to satisfy an economic substance test by having real, proportionate to the UAE registered profits and demonstrable substantial economic activities in the UAE, taking into account the global standards developed by the OECD and the EU for business taxation to curb harmful tax practices.
NEDs as independent directors are core assets highly contributing to the company’s management and commercial development through their skills and experiences on the ground. A NED is a board member-only, and do not hold a full-time executive position, who is not incurring any responsibility for the company’s daily management or operations.

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Mohammed Rahali

Managing Partner | E: m.rahali@wincoreadvisory.com | M: +971 (0) 55 138 9591

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