Introduction
The UAE Corporate Tax Law exempts a Qualifying Public Benefit Entity from Corporate Tax if it fulfills certain conditions. The Cabinet Decision has brought forth certain guidelines for Qualifying Entities.
Which entities are Qualifying Public Benefit Entities?
The Schedule annexed to the decision identifies the entities that are considered Qualifying Entities as per Article 2.
For example Arab Youth Centre, UAE University, etc.
Notification for change in fulfilling conditions by Qualifying Public Benefit Entity
The Government Entity must inform the Ministry of Finance of any changes in the Public Benefit Entities listed in the schedule that affect their compliance with the UAE Corporate Tax Law.
The notification must be made within 20 business days of the date of any change in Qualifying Entity in the prescribed form and manner.
ARE YOU UNSURE ABOUT THE CONDITIONS REQUIRED FOR QUALIFYING PUBLIC BENEFIT ENTITY? READ MORE HERE
Amendment to the Schedule of Qualifying Public Benefit Entities
Article 3 outlines the process for amending the schedule:
- Government Entity to submit application: A Government Entity may file an application suggesting an addition or deletion to the Schedule to the Ministry of Finance.
- The Ministry may request information, etc.: The Ministry may be provided with information, documentation, and data for processing the application by the Entity.
- Cabinet to amend: The Cabinet (on the suggestion of the Minister) can amend the decision and Schedule.
Request for Information for Qualifying Public Benefit Entity
- Qualifying Entity to provide information:
- A Qualifying Entity must provide all necessary documents, data, and information.
- It should be provided to the Ministry and FTA for verifying their compliance with the UAE Corporate Tax Law.
- Government Entity to provide data:
- The Government Entities must cooperate with the Ministry and FTA.
- This is for providing any relevant information, documentation, etc. related to QPE.
- Exchange of Information between Ministry and FTA:
- The Ministry and FTA can exchange information, data, etc. of Qualifying Entity.
Implementing Decisions
Article 5 empowers the Minister of Finance to issue necessary decisions to implement the provisions of the decision.
Publication and Application of the Decision
The Official Gazette will publish the decision as mandated by Article 6. It will come into effect the day following publication.
