How can one get benefited from the UAE Corporate Tax exemption if the person own less than 5% shareholding in a company?
It is possible for a UAE company to make a strategic investment in another business that does not result in a 5% or greater ownership interest, or for events beyond the UAE shareholder company’s control to cause the percentage ownership in the Participation to fall below the 5% ownership threshold.
An ownership interest with an acquisition cost equal to or greater than AED 4 million will be deemed to meet the minimum ownership requirement in order to address such situations and lessen the administrative burden associated with monitoring the ongoing compliance with the requirement under the Participation Exemption regime. This indicates that under the Participation Exemption regime, the income earned from such an ownership stake will be exempt, provided that everything.
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