UAE - Corporate tax exemption rules

13.04.2023 The UAE Ministry of Finance has adopted Decision No. 43 on exemption from tax registration for the purposes of the Corporate Tax Law.

The persons exempt from paying tax include:

• government organizations,
• state-controlled organizations,
• mining enterprises
• enterprises that are not engaged in the extraction of natural resources that meet the necessary conditions in accordance with the Corporate Tax Law.

In addition, non-resident persons who receive income only from the UAE and do not have a permanent representative office in the UAE are exempt from registration to pay corporate tax.

This decision is in line with international best practices, since entities exempt from corporate tax, such as the federal government, government departments and authorities of the UAE, other government agencies and other categories mentioned above, are not subject to tax registration and are not taxed.

Organizations that meet the exemption conditions specified in the Law do not need to register with the Federal Tax Authority.
Link to source: https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf