Economic substance regulation (ESR) filing refers to the process by which businesses, particularly those operating in jurisdictions with low or zero corporate tax rates, demonstrate that they have substantial economic activities within the jurisdiction to justify their tax residency and benefits.

This is part of global efforts to combat tax evasion and ensure that profits are reported where economic activities and value creation occur. Economic substance regulation filing is crucial for companies operating in jurisdictions with favorable tax regimes. It ensures that these companies have a real, substantial presence in the jurisdiction and are not merely exploiting tax benefits without contributing to the local economy.