Transform Your Vision into Reality—Book Your Free Consultation!
Don’t wait—schedule your free consultation today and take the first step towards transforming your vision into reality!

The Economic Substance Regulation (ESR) Test & Assessment is a crucial aspect of the legal obligations that must be fulfilled by the UAE-based businesses that are engaged in the relevant activities like banking, insurance, shipping, etcetera. The test examines whether companies that are located on the grounds of the Emirates have sufficient economic substance by their operational presence, such as staffing, management, and the presence of physical assets. Here at the firm, we specialize in offering advice, ESR education as well as doing the assessments and reporting for stimulating Saudi companies to progress with ESR regulations. And as a result, we have achieved significant success in this regard as well as have been successful in complying with the regulations of UAE.
The ESR Test measures the fiscal presence of a particular company in the Emirates and simultaneously verifies that it complies with the Economic Substance Regulation. Companies, which are in the Relevant Activities category, must make sure that the economic substance they use in the Tel Aviv is strong enough to make them profit from buying the services and items they are engaged in. This test is based on the condition that AED 50 million in annual revenue is expected to have activity in the UAE that is actual. This, in turn, increases the development of products and continues to be strong. The test makes it mandatory for the companies to present the physical presence of the UAE, which is one of the deciding factors.
The compliance with the test (ESR) is made mandatory for those businesses in the United Arab Emirates whose operations are defined as those which are concerned with relevant activities and aims to demonstrate e-commerce activities in the country. Non-conformity may entail penalties, forfeiting of licenses, and even the closure of the business.
The economic substance regulation (ESR) is an instrument that the United Arab Emirates is using to prevent harmful tax practices in the jurisdictions by embracing the OECD guidelines. Your company also establishes a good reputation in the worldwide market and sidesteps international checking as a result of complying with ESR. These are the essential benefits resulting from the ESR initiative.
Businesses that cannot successfully pass the ESR Test or do not fulfil the reporting requirements may be fined for a minimum of AED 20,000 by AED 400,000. Other penalties aside, if not compliant, the firm will also be prone to injuries to its reputation as well as the suspension of its operation.
Preparing for ESR Test is a step taken by the company which entails review of the operational activities of the company and guaranteeing full compliance with the CIGA criteria besides preparing the necessary documentation. Vigor Accounting & Taxation initiates a thorough process to support businesses as they work on this task, ensuring that all of the necessary criteria in the ESR Test are met.
At Vigor Accounting & Taxation, we direct companies regarding the three chief indicators for The ESR Test, which are
At Vigor Accounting & Taxation, our years of experience in concerned with the business credibility, we guide you through the economic commercial, and financial substance to conform to the components of Economic Substance Regulation. We have come up with the means of ensuring your business is compliant without attracting penalties or debilitating your activity.
It is mandatory for companies to understand the guidelines of Economic Substance Regulation (ESR). Economic Substance Test & Assessment means that your business complies with the threshold for economic presence in the UAE, as well as stay out of the penalties. At Vigor Accounting & Taxation we help with regard to ESR regulations as well as ESR test preparation and submission of relevant paperwork.
Don’t wait—schedule your free consultation today and take the first step towards transforming your vision into reality!