UAE publishes tax exemption regulations

The list of those who are exempt from registering for corporate tax is maintained by the UAE Ministry of Finance.

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According to the UAE Ministry of Finance, some people are not required to register for corporate tax.

In accordance with Article 51 of the Corporate Tax Law, the authority published Ministerial Decision No. 43 of 2023 on Exemption from Tax Registration for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Companies and Businesses (the "Corporate Tax Law").

Exemptions from corporation taxation in the UAE

Governmental organisations, organisations under the jurisdiction of the government, companies engaged in extractive industries, and companies engaged in non-extractive natural resource industries are among those exempt.

Moreover, non-residents who merely have income from the UAE and do not have a Permanent Establishment in the UAE are not required to register for Corporate Tax.

The choice is consistent with global best practises because organisations that are not subject to tax, such as the federal government, UAE government departments and authorities, other public institutions, and other groups mentioned above, are excluded from tax registration.

There is no requirement for these organisations to register with the Federal Tax Authority as long as they continue to satisfy the exemption requirements outlined in the pertinent sections of the Decree-Law.

The authorities further stated that the website of the Ministry of Finance hosts all Cabinet Decisions and Ministerial Decisions issued in relation to the Business Tax Law.

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