Economic Substance Regulations

NIXXA’s Expertise in Economic Substance Regulations (ESR) Compliance

In the UAE, Economic Substance Regulations (ESR) ensure businesses are paying the right taxes and are not using loopholes to shift profits. At NIXXA, we help you navigate these regulations and stay compliant, whether you’re operating onshore or offshore.

We guide you through every step of the ESR process, from determining if your business activities qualify, to ensuring you meet the Economic Substance Test. Our goal is to help you avoid costly fines and make sure your business stays on track with local tax laws.

How NIXXA Can Help:

Clear ESR Guidance
We help you understand if your activities fall under ESR and what you need to do to comply with the regulations.
Economic Substance Test Support
We assist in preparing and submitting documents to show your business has a real presence in the UAE, meeting the ESR criteria.
Timely Submissions
Our team ensures that you submit ESR notifications and reports on time, keeping you compliant and avoiding penalties.
Avoiding Fines
We help you avoid fines for non-compliance, from missed submissions to demonstrating insufficient economic substance.
Continuous Support
We monitor your ESR status and keep you updated on any changes to the regulations, ensuring long-term compliance.

Advantages

Our solutions offer reliability, efficiency, and compliance, helping businesses streamline operations and achieve sustainable growth.

Expert Guidance on ESR Compliance

At NIXXA, we provide expert advice to help businesses understand and comply with the UAE’s Economic Substance Regulations (ESR).

Seamless Economic Substance Test Support

The Economic Substance Test can be tricky, but we make it easier for you.

Timely and Accurate Submission of Documents

We help ensure all your ESR notifications and reports are submitted on time, avoiding penalties for late submissions.

Avoidance of Heavy Fines and Penalties

Non-compliance with ESR can lead to severe fines and even business license suspension.

Continuous Monitoring and Support

ESR regulations are subject to change, and it can be tough to keep up.

What We Provide

We provide expert guidance to ensure your business complies with the UAE's Economic Substance Regulations (ESR).

Our team supports businesses in completing the Economic Substance Test, ensuring operations align with local laws.

We handle timely and accurate submission of ESR notifications and reports, preventing penalties.

Process

01

Client Approaches NIXXA

The client provides the necessary company data for analysis.

02

Understand the Business

We analyze the operations and activities of your business to understand its structure and requirements.

03

File the Notification

NIXXA assists in filing the ESR notification, indicating whether your business is conducting relevant activities or not.

04

ESR Test

We help businesses conducting relevant activities to meet the ESR Test requirements and ensure compliance.

05

Continuous Support

NIXXA provides ongoing support to ensure your business remains in line with ESR regulations, avoiding penalties and ensuring smooth operations.

FAQ

Economic Substance Regulation (ESR) is designed to ensure that businesses with certain activities in the UAE meet local economic substance requirements.

All businesses in the UAE, including those in mainland, free zones, and offshore, must comply with ESR if they engage in relevant activities, such as banking, insurance, and intellectual property business.

Failure to comply with ESR can result in hefty fines, starting from AED 20,000 for non-submission of notifications or reports, and can go up to AED 400,000 for repeated violations.

Nixxa provides expert advice and assistance to businesses in ensuring compliance with ESR regulations.