Unified UAE Legislation Database

FAQ: Who is exempt from UAE Corporate Tax?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer:

Certain persons are exempt from UAE Corporate Tax either automatically or upon application, depending on their status and activities. (Article 4 of Federal Decree-Law No. 47 of 2022)

 

Exempt Persons (Automatic):

• Government Entities – UAE Federal or Emirate governments and their public institutions (Article 5)

• Government Controlled Entities – If listed in a Cabinet Decision and carrying out mandated activities only (Article 6)

• Extractive Businesses – Entities involved in oil, gas, and other natural resource extraction, if subject to Emirate-level tax and meeting conditions (Article 7)

• Non-Extractive Natural Resource Businesses – Similar exemption if subject to Emirate-level tax and engaged solely with businesses (Article 8)

 

Exempt Persons (By Application):

• Public Benefit Entities – Must be listed in Cabinet Decision No. 37 of 2023 and meet public welfare conditions (Article 9)

• Qualifying Investment Funds – Must meet regulatory, listing/distribution, and anti-avoidance criteria (Article 10)

• Pension and Social Security Funds – Public or private funds under regulatory supervision (Article 4(1)(g))

• Wholly-Owned UAE En...