UAE Corporate Tax Registration and Exemptions: A Complete Guide

The UAE Ministry of Finance passed Ministerial Decision No.43 on 10 March 2023, in relation to exemptions from corporate tax registration. The decision furnishes detailed conditions to qualify for corporate tax registration exemptions. Therefore, taxable persons are advised to consult UAE Tax Consults to establish their exemption status as per the corporate tax law and to stay compliant, to which noncompliance accrues hefty fines. 

Who is exempted from Corporate Tax Registration?

The following persons are exempted from corporate tax registration: 

• A Government Entity
• A Government Controlled Entity
• If a person holds Non-Extractive Natural Resource Business and fulfills the requirements.
• A non-resident person who only receives income from sources within the State and who does not, as defined by the Corporate Tax Law, have a Permanent Establishment within the State.

Read more: Exemptions under Corporate Tax Law, UAE

Objectives of Ministerial Decision No.43 of 2023

The Ministerial Decision aims to reduce tax liability burden for certain Exempt Persons, while at the same time maintaining the UAE's appeal to foreign investors by simplifying tax compliance requirements for Non-Resident Persons earning UAE-sourced income without a Permanent Establishment in the UAE, aligned with international best practices. Further, the Decision is beneficial to Non-Resident Persons who earn income from the UAE without having a Permanent Establishment there. The Decision makes it easier for foreign investors to do business in the UAE by exempting Non-Resident Persons from meeting certain tax compliance requirements. 

Read more: How is corporate tax calculated in the UAE?

 

What are the UAE corporate tax registration requirements and exemptions?

In the UAE, businesses must register for corporate tax and adhere to specific regulations. Certain entities, such as qualifying investment funds and public benefit entities, may be exempt from registration. For detailed advice on registration and exemptions, consult Tax Consultant Dubai.

Choose Corporate Tax Advisory Services from Tax Consultants UAE

It is imperative for taxable persons to determine the categories exempted for corporate tax registration’s purposes. Therefore, it is advisable for taxable persons to consult UAE Tax Consults to establish their exemption status as per the corporate tax law and to stay compliant, to which noncompliance accrues hefty fines. Thus, contact us today and we shall be glad to assist you.

Mostafa

Mostafa is a qualified Corporate Tax Consultant with over 5 years of experience gained in diverse intricate tax matters, he has high expertise in conducting tax negotiations and investigations with the Federal Tax Authority and other external Tax Bodies. He has vast experience in reviewing and drafting tax documents. Mostafa has also advised on a plethora of tax matters, he draws much attention to tax filing procedures and to offering professional investigations to underlining tax complexities.