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.

Is LLC Trade License Cancellation mandatory when I stop doing business?
Yes. If you stop using your company but don’t cancel the license, fines and liabilities can still grow. Proper cancellation protects you from future problems.
Do I always need a liquidator to cancel my LLC license?
Some company types must appoint a registered liquidator, especially if the structure is larger or if the law requires a liquidation report. Smaller entities may follow a simpler process, but professional guidance still helps.
Can I cancel my trade license if I still have employees?
You must first settle salaries and end-of-service benefits, then cancel all visas and labour cards. Only after clearing employee matters can you complete the license cancellation.
How long should I keep documents after cancellation?
It’s wise to keep digital or physical copies of all resolutions, clearances, and the cancellation certificate for several years, in case any question appears in the future.
How does Mubarak Al Ketbi (MAK) Auditing make the process easier?
Mubarak Al Ketbi (MAK) Auditing prepares your documents, coordinates with authorities, tracks clearances, and ensures that each step follows UAE rules so that your closure is smooth and compliant.

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