Hina Javed Malik
UAE releases tax exemption regulations:
The list of those who are exempt from registering for corporate tax is maintained by the UAE Ministry of Finance.
AE The Ministry of Finance has declared that 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 discharge 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 UAE Corporation tax registration:
Governmental organizations, organizations 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 practices because organizations 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 organizations 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.
