As the corporate tax system in the UAE is fully operational in the year 2025, companies should guarantee their compliance with the system whilst seeking legal means to reduce their tax liability. Corporate tax exemption of your organization is one of the most strategic routes to know.
At Singiri Auditing, we advise clients in all industries about how they can take advantage of exemptions in UAE Federal Decree Law No. 47 of 2022. And if you are a government-linked organization, qualifying public benefit organization or regulated fund, our corporate tax consultants guide you through all the details of compliance.
Who is Eligible to get Corporate Tax Exemption in the UAE?
In Article 4 of the UAE Corporate Tax Law, the entities which can be considered Exempt Persons (therefore, are not required to pay corporate tax provided that they satisfy a set of conditions) may include the following:
Government Entities
It is wholly owned and controlled by government entities of UAE.
Government-Controlled Entities
Organizations having a prescribed percentage of state ownership, and conducting acceptable non-commercial business.
Extractive Businesses
Organizations engaging in extraction of natural resources, in agreement with provisions of Article 7.
Non-Extractive Natural Resource Business
Involved in adjacent industries (Article 8), instead pay tax at the Emirate level.
Qualifying Public Benefit Entities
Article 9 approved non-profits and charitable organizations.
Qualifying Investment Funds
Article 10 conditions are met mutual funds or real estate investment trusts (REITs).
Pension and Social Security Funds
Controlled public/private funds sanctioned by qualified authorities.
Wholly-Owned Subsidiaries of Exempt Persons
They do this only when they assist or administer the assets or activities of the exempt person.
Other Entities
As fixed by Cabinet decisions on the basis of recommendations of the Ministry of Finance.
Application & Compliance: What You Need to Know in 2025
Certain exemption categories, notably Points 69 above, have to formally apply to the FTA to be granted exemption status following official procedures. The exemption date will take effect:
- Ever since the beginning of the Tax Period indicated in your application, or
- As stipulated by the Federal Tax Authority (FTA)
Note: The exemption may be lost in case any of the conditions is breached within the tax period. In this event, it can decide to fully tax such businesses since the start of such period.
The Minister of Finance however has discretionary powers to grant extension of exemptions or postpone revocation in cases where non-compliance occurred because of:
- Liquidation or shutting down of businesses
- These are temporary problems that can be corrected.
- Other acceptable causes accepted by the Ministry
Partial Exemption Scenarios
Some entities (e.g., government-controlled companies or extractive businesses) may be taxable in some respects but exempt for specific provisions, such as:
- Group transfers (Article 26)
- Restructuring relief (Article 27)
- Loss transfers (Article 38)
- Tax grouping (Article 40)
How Singiri & Co. Supports Tax-Exempt Entities
Our dedicated UAE corporate tax advisory team would be happy to assist you:
- Determine and qualify your exemption eligibility
- FTA exemption application should be prepared and filed
- track your exemption conditions
- Appeal to authorities on behalf of your case in the event of exemption loss
We help you operate in compliance with the letter and spirit of the tax law in UAE- incurring no penalties but enjoying the tax benefits.
Get professional advice Today
Not sure whether your company is eligible to corporate tax exemption in the UAE? Contact us at Singiri & Co. and allow our professionals to assist you throughout.
Fill in Contact Us or see our Corporate Tax Services page.
