11-July-2020
Corporate News
 
Significant purpose test: Companies must justify UAE footprint by today
30-Jun-2020

By end of Tuesday, hundreds of wealthy Indians and NRIs will have to regularise their outfits, subsidiaries, and paper companies that were set up in Dubai to escape tax and park undisclosed fund moved from Switzerland. Under the United Arab Emirates (UAE) regulations, companies will have to justify their presence there — with evidence of employees and assets to demonstrate that there is genuine economic activity — and explain that profits booked are indeed generated from activities undertaken in the region. The deadline to submit all documents for the ‘significant purpose test’ is June 30, 2020 – which many companies, either due to challenges posed by Covid-19 or their inability to produce adequate proof, will miss. Some have asked UAE authorities for more time.

News Source:- https://economictimes.indiatimes.com/nri/working-abroad/significant-purpose-test-companies-must-justify-uae-footprint-by-today/articleshow/76697531.cms