Exception from Registration for UAE Corporate Tax

The following individuals or entities are not required to register for Corporate Tax with the Authority:

  1. Government Entities– are organizations or agencies owned or controlled by the government, such as ministries, state-owned enterprises, and local authorities, and are exempt from corporate tax registration.
  2. Government-Controlled Entities – are business or organizations where the government has significant control or ownership, but they may not fully government-owned. These entities also exempt from corporate tax registration.
  3. Person in Extractive Business- are individuals or entities engaged in industries like mining, oil, or gas extraction, and they are exempt from corporate tax registration if they meet the conditions specifies in Article 7 of the Corporate Tax Law.
  4. Persons in Non- Extractive Natural Resource Businesses –are individuals or entities in involved in industries like agriculture or forestry, and they are exempt from the corporate tax registration if they meet the conditions outlines in Article 8 of the Corporate Tax Law.
  5. Non-Resident Persons- are individuals or entities that earn only State Sourced Income under Article 13 of the Corporate Tax Law and do not have a Permanent Establishment in the State, and are exempt from the corporate tax registration according to the law’s provision.

How MAKCA can help?

By appointing Certified Tax Agent helps determine if your business qualifies for an exemption from UAE Corporate Tax registration by assessing your activities, income sources, and compliance with tax laws. They evaluate whether you fall under specific categories, such us government entities, Free Zone companies, or non-resident businesses, and assist with required documentation. They also provide guidance on filing, ensuring your business meets all legal requirements for exemption, and stay updated on any changes to tax laws.

Frequently Asked Questions

How can you determine if your business is exempt from UAE Corporate Tax regulations?

To determine if your business is exempt from UAE Corporate Tax, consider factor such as the type of business, income level, location in a free zone and involvement in specific activities like exporting. Consulting a tax advisor can help you clarify your specific situation.

How does corporate tax help a start-up’s growth?
Corporate tax teaches start-ups to keep better records, plan smartly, and look more trustworthy, which can help them get more investments.
Are there any special tax breaks for new tech companies in the UAE?
Yes, tech companies can get tax holidays, pay zero tax on profits below a certain level, and keep special rates in some Free Zones.
Why is corporate tax good for fair business?
Corporate tax makes sure every business pays its part, so big firms can't get ahead by skipping taxes. This creates a level playing field for start-ups and supports public services.

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