(Article 22, Article 23, Article 24, Article 25 of Federal Decree-Law No. 47 of 2022)
Answer:
Exempt Income Categories:
1. Dividends and profit distributions from UAE juridical persons.
Exempt from Corporate Tax regardless of ownership percentage or the tax status of the payer.
2. Dividends, capital gains and other income from a Participating Interest in a foreign juridical person.
Exempt, provided all participation exemption conditions are met:
- Minimum 5% ownership or AED 4 million acquisition cost
- Held for at least 12 months
- Subject to a foreign corporate or similar tax not less than 9%
- Meets other technical tests (asset test, profit entitlement, etc.)
3. Capital gains, foreign exchange and impairment gains/losses related to a Participating Interest.
Also exempt if the Participating Interest conditions are met.
4. Income from a Foreign Permanent Establishment
Exempt if the UAE company elects to apply the exemption and the foreign branch is subject to corporate or similar tax at a rate not less than 9%.
5. Income of non-residents from operating or leasing aircraft or ships in international transport
Exempt if:
- The non-res...