Correction · Not a compliance product
Economic Substance filings were cancelled for periods after 31 December 2022
What changed
The Ministry of Finance announced that Economic Substance reporting requirements no longer apply for financial years ending after 31 December 2022, following Cabinet Decision No. 98 of 2024, which amends Cabinet Decision No. 57 of 2020 on economic substance requirements.
In practical terms for most free zone and mainland licensees: you should not be buying a recurring “ESR filing” product for periods after that cut-off. Corporate Tax registration, returns, and — where relevant — Qualifying Free Zone Person analysis are the live compliance tracks.
What still applies
- Historic ESR periods from 1 January 2019 through 31 December 2022 — notifications, reports, and authority follow-ups for that window are not erased by the amendment.
- Administrative penalties issued for financial years ending after 31 December 2022 are described as cancelled under the Cabinet Decision, with paid amounts subject to refund through the Federal Tax Authority — confirm process status with the FTA if you paid.
- Substance for Corporate Tax / QFZP purposes is a different legal question. Ending ESR filings does not mean free zone companies can ignore substance where QFZP conditions require it — see QFZP reality.
What this page is not
This is not an ESR compliance playbook, and CoreSpaces does not sell ESR filings. We publish the correction because founders still receive quotes for a regime that no longer covers post-2022 periods — and because accuracy is the product.
For formation sequencing and fee honesty (not tax elections), use the setup process and hidden-costs guide.
FAQ
Do I still need to file an Economic Substance notification every year?
For financial years ending after 31 December 2022, the Ministry of Finance announced that Economic Substance notifications and reports are no longer required, following Cabinet Decision No. 98 of 2024. Confirm against the MoF announcement and the Cabinet Decision text for your accounting period.
Does that mean ESR never applied to my company?
No. Historic obligations for financial years from 1 January 2019 through 31 December 2022 can still matter — including information requests and penalties relating to that window. This page is a correction about ongoing filings, not a wipe of the past.
Why do some agencies still sell ESR filings?
Old marketing pages and retainer menus often outlive the law. Cabinet Decision 98/2024 is the instrument that restricted the regime; ask any provider which primary text they are filing against for a 2023+ period.