Senior Financial Analyst

Hello,

My query is in respect of the Economic Substance Regulations introduced in UAE in early Jan 2020. I need certain clarification on the scope of the relevant activity definition of Service Centre and Headquartered Business.

We have foreign group companies based in West Africa which are coming under the purview of the taxation of that particular country where they are carrying the business activities.

We have one free zone company registered with DAFZA who is registered for carrying out the activities of purchasing goods from the third party and selling it to the foreign group companies. The goods purchased from the third party supplier are not entering into UAE and are directly sold to foreign group companies on the vessel through transferring the ownership of the goods in the ship.

We are managing the financial risk, documentation, and order management relating to the purchase of the goods from a third party supplier.

Are we carrying out any relevant activity according to the above business model? If yes, will request to provide supporting documentation with your answer and to also let us know under which relevant activity (Service Centre / Headquarter Business) are we covered.

You can reach out to me for any of your further questions/ answers - +971-543362056.

Thanks and Regards

Ankit Kumar Jain