The U.A.E. Ministry of finance has recently updated guidance on Economic Substance Report.

Key changes are as below:

Terminology	As per Old Guidance	As per New Guidance
Total Revenue	Total revenue is the income received from normal business operations and other business activities, and appears first on a company’s income statement.	Total revenue is the income received from an entity’s ordinary activities, as reported in the first line of the income statement.   Transactions that do not arise from an entity’s ordinary activities (e.g., dividend income or gains from the sale of an asset) are not included in Total Revenue
Tangible Assets	Not Defined	Tangible assets are assets that have a finite monetary value, and usually have a physical form. This can include: ● Property, plant and equipment ● Inventory ● Receivables ● Cash

The Licensees who are required to file Economic Substance Reports should carefully consider the above updates while filing their Economic Substance Reports to ensure accurate reporting.