11 July 2026 · Discontinued
Is ESR Still Required in the UAE?
No. For financial years starting on or after 1 January 2023, UAE licensees no longer file Economic Substance notifications or reports. Cabinet Decision No. 98 of 2024 discontinued the regime for those periods, and penalties raised for them are being cancelled and refunded. ESR still applies to the 2019–2022 ESR Period, and free-zone companies must keep substance under corporate tax instead.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
You do not file ESR for FY 2023 onward
The reporting framework simply does not apply to newer periods.
- No notification for financial years from 1 Jan 2023.
- No economic-substance report for those years.
- Penalties for post-2022 periods cancelled and refunded.
- Applies to mainland and free-zone licensees alike.
The 2019–2022 ESR Period is unchanged
Legacy obligations for the original period still stand.
- Keep your 2019–2022 notifications and reports.
- Resolve any open ESR assessments or disputes.
- Retain the supporting substance evidence.
- New corporate-tax substance rules apply going forward.
Related guides
Frequently Asked Questions
For anyone unsure whether an ESR deadline still applies.
Do I need to file ESR in 2026?
No, not for financial years starting on or after 1 January 2023. Those periods have no ESR notification or report.
Why do people still talk about ESR filing?
Much of the online guidance predates Cabinet Decision 98 of 2024 and has not been updated. The current position is that ESR is discontinued for FY 2023 onward.
Does discontinuation apply to free zones?
Yes, to UAE licensees generally. Free-zone companies must, separately, keep adequate substance under the corporate-tax rules to hold a 0% rate.
Can Exiloz confirm my status?
Yes. We review your ESR history and confirm whether any filing or penalty is still open.
Confirm your ESR position
Exiloz tells you in one review whether any ESR filing or penalty is still live for your business.