With the issuance of the Cabinet Resolution No. 57 of 2020 regarding Economic Substance regulations (ESR) on 10 August 2020, the Federal Tax Authority (FTA) was selected as the National Evaluating Authority. It is the initiative taken by the government of UAE in line with its global commitment to worldwide trade regulatory bodies such as the Organization for Economic Co-operation and Development (OECD). ESR enforces an obligation for UAE entities together with offshore companies as well as branches of local and foreign companies that carry out certain activities, to keep satisfactory economic substance in UAE.
