MoF Organizes Introductory Workshop on the Implementation of Cabinet Resolution No. (31) of 2019 on Economic Substance Regulations

The Ministry of Finance (MoF) recently organized an introductory workshop on the implementation of Cabinet Resolution No. (31) of 2019 concerning economic substance regulations at the Intercontinental Hotel Dubai Festival City. The workshop aimed to explain the details of the law and the mechanisms of its application, and ensure its successful implementation, especially by the regulatory authorities, which play an important role in the collection of relevant information in order to raise and enhance the effectiveness and efficiency of the evaluation process. Regulatory authorities in the country and a number of ministry employees attended the workshop.

H.E. Younis Haji Al Khoori undersecretary of MoF stressed the importance of organizing this induction workshop for regulatory authorities in the UAE, to raise awareness on the Council of Ministers Resolution No. (31) of 2019 2019 concerning economic substance regulations, with the aim of activating it optimally by all relevant authorities. H.E. said: “The Ministry of Finance is keen to continue to work and coordinate with all its strategic partners and the various federal authorities in the nation and provide all means of support to them, in order to implement the best policies and government decisions that would achieve the nation’s strategic objectives and upgrade its position in various economic and financial fields.”

The workshop dealt with several substantive themes, including defining the concept of "economic article", and identifying the entities subject to this law, and the steps and duties that licensees of the UAE companies must take to meet the requirements, in addition to outlining the regulatory authorities’ responsibilities. At the end of the workshop, all queries and questions were answered.

Underlining the UAE's commitment to the overall framework of the Organization for Economic Cooperation and Development (OCED) and within the framework of the European Union's review of the country's tax framework, the UAE issued Cabinet Resolution No. (31) of 2019 on economic substance regulations on April 30, 2019. Relevant companies are required to submit a report to the relevant regulatory authority to demonstrate compliance with the law no later than 12 months after the end of each fiscal year beginning in 2019 (the reporting date is 31 December 2020).