The UAE repealed the Economic Substance Regulations (ESR) for financial years commencing on or after 1 January 2023. The Federal Tax Authority continues to conduct audits of historical ESR filings covering the period from 2020 to 2023.

BDO in the UAE supports organisations in responding to these historical ESR audit requirements and managing related compliance risks.

How BDO in the UAE can help

We provide a range of services to support clients throughout the ESR audit process, including:

• Pre-audit reviews to identify potential risk areas
• Assistance with collating data and documentation requested by the Federal Tax Authority
• Support in preparing responses to Federal Tax Authority queries
• Support during the audit process
• Post-audit assistance, including advice on assessments or penalties raised by the Federal Tax Authority

Supporting historical ESR compliance

Our approach helps organisations address historical ESR obligations in a structured and practical manner, supporting effective engagement with the Federal Tax Authority and reducing the risk of further compliance issues.