The UAE Ministry of Finance has declared that certain individuals are not required to register for corporate tax.
In line 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 excluded.
Moreover, non-residents who merely have revenue 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 since 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 all Cabinet and Ministerial Decisions issued in relation to the Corporation Tax Law are accessible on the website of the Ministry of Finance.
