UAE announces Corporate Tax Exemption for Public Welfare Entities

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Dubai April 25, 2023:

The Ministry of Finance (MoF) has announced that entities contributing to public and community welfare are exempt from Corporate Tax (CT), which is set to come into effect this year. The exemption is designed to reflect the significant role played by these entities in the UAE, which often includes organisations with a focus on areas of religion, charity, science, education and culture.

A statement issued by the Ministry said companies involved and focused on public welfare, philanthropy, community services or CSR will be exempt from corporate tax. These entities must continue to comply with all pertinent local, state and federal laws and notify the MoF of any changes that may affect their status as qualifying public benefit entities in order to be eligible for UAE corporate tax exemption. These entities must also meet the requirements under Article 9 of the corporate tax law.

The qualifying public entities must also register with the FTA and obtain a tax registration number for CT purposes. On the Finance Minister’s recommendation, the Cabinet may change, add, or remove entities from the list of qualifying entities.

Earlier, the Ministry has also announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.

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