As per Cabinet Decision No. 98 of 2024 which amends Cabinet Resolution No. 57 of 2020, the UAE has officially 𝗰𝗮𝗻𝗰𝗲𝗹𝗹𝗲𝗱 𝘁𝗵𝗲 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘁𝗼 𝘀𝘂𝗯𝗺𝗶𝘁 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗦𝘂𝗯𝘀𝘁𝗮𝗻𝗰𝗲 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 for financial years ending after 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟮.

𝗞𝗲𝘆 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:
1. The application of ESR is now limited to financial years between 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟭, 𝟮𝟬𝟭𝟵, 𝗮𝗻𝗱 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟮.
2. ESR requirements are cancelled for financial years ending after December 31, 2022.
3. All administrative penalties under Cabinet Decision No. 57 of 2020 for financial years ending 𝗮𝗳𝘁𝗲𝗿 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟮, will be 𝗰𝗮𝗻𝗰𝗲𝗹𝗹𝗲𝗱.
4. Any penalties paid by licensees or exempted licensees for financial years starting 𝗮𝗳𝘁𝗲𝗿 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟮𝟮, will be 𝗿𝗲𝗳𝘂𝗻𝗱𝗲𝗱.

Keep in mind that while the reporting requirements are cancelled, 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗦𝘂𝗯𝘀𝘁𝗮𝗻𝗰𝗲 demonstration remains a critical condition under the UAE's 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝘁𝗮𝘅 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀, particularly for businesses aiming to qualify for special tax benefits.

Stay informed and ensure compliance with the latest regulations!