UAE’s Ministry of Finance has announced that certain businesses and individuals are exempt from registering for Corporate Tax.
The authority issued a Ministerial Decision No. 43 of 2023 on Exception from Tax Registration for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), in accordance with Article 51 of the Corporate Tax Law.
UAE corporate tax registration exemptions
Those exempt include government entities, government-controlled entities, extractive businesses, and non-extractive natural resource businesses that meet the necessary conditions under the Corporate Tax Law.
In addition, non-resident persons who only earn UAE-sourced income and do not have a Permanent Establishment in the UAE are exempt from registering for Corporate Tax.
The decision is in line with international best practices, as entities exempt from Corporate Tax such as the federal government, UAE government departments and authorities, other public institutions, and other categories referred to above are excepted from tax registration because they are not subject to tax.
As long as these entities continue to meet the exemption conditions specified in the relevant articles of the Decree-Law, there is no need for them to register with the Federal Tax Authority.
The authority added that all Cabinet Decisions and Ministerial Decisions issued relating to the Corporate Tax Law are available on the Ministry of Finance’s website