The Ministry of Finance (MOF) in the United Arab Emirates (UAE) has released a list of businesses exempt from registering for Corporate Tax under the Taxation of Corporations and Businesses.
This decision aligns with the Corporate Tax Law that mandates taxable individuals to register for Corporate Tax with the Federal Tax Authority, with specific exceptions.
Entities exempt from the registration include government organizations, government-controlled entities, and extractive/non-extractive natural resource businesses that meet the criteria outlined in the Corporate Tax Law.
Individuals, who do not live in UAE and do not have a permanent organization there, will not be required to register for Corporate Tax if their sole income is earned in UAE.
Earlier, MoF also unveiled plans to alleviate the corporate tax burden for small and micro enterprises, start-ups, and freelancers, starting from 1 June 2023.
As outlined in the recently issued Ministerial Decision No. 73 of 2023, businesses and individuals with revenues of AED 3 million or less are eligible for the ‘Small Business Relief’ initiative, aimed at reducing the corporate tax burden and compliance costs.
The UAE government previously announced plans to impose a nine percent tax on the profits of companies with earnings exceeding AED 375,000.
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