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.

What is the minimum age to start a business in UAE?
The minimum legal age is now 18 years. Anyone 18 or older can register, own, and run a business.
Can I open a company if I am 17 years old?
Yes, if you are at least 15, you can trade with guardian and court approvals as per Article 18 of the Commercial Transactions Law.
Can minors open bank accounts for business?
es, if you are 18, you can open a bank account without guardian approval. Below 18, you need guardian co-signing.
Can I start crowdfunding for my idea at 16?
Yes, but you will need parental approval on most crowdfunding platforms such as Dubai Next.
Do I need a guardian to sign business contracts at 18?
Most contracts can be signed independently at 18, but for some legal documents, guardian support may still be required until 21.

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