Exception from Registration for UAE Corporate Tax

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’s the first step to get a VARA license in UAE?
The first step is sending a disclosure form to DET or a Freezone Authority, with business plans and documents, and then paying the first half of the fee.
What papers must I have for the VARA license?
You must prepare business certificates, owner lists, proof of capital, management plans, business forecasts, and insurance documents.
Can I start my business after initial approval?
No, you can only set up the company and hire staff. You can’t run any virtual asset activities until you get the VASP license.
How long does the VARA license process take?
The process time depends on how fast you send documents and answer VARA questions, but it usually takes several weeks to months.
How can Mubarak Al Ketbi (MAK) Auditing help my company?
MAK Auditing helps you gather documents, fill out forms, pay fees, and follow VARA rules so your company can run safely and legally.

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