Update: Exemption from Tax Registration under UAE Corporate Tax Law

Introduction

Tax Registration is necessary under the UAE Corporate Tax Law for implications of corporate tax to be levied on entities. The Ministry of Finance, UAE has issued a decision underlining certain specific entities that do not have to register for Corporate Tax and are exempted.

Exemption from Tax Registration under UAE Corporate Tax Law

Certain entities are exempted from registration under the UAE Corporate Tax Law. These are as follows:

1. Government Entity or,
2. Government Controlled Entity or,
3. The person undertaking Extractive Business Activity as per Article 7 of the UAE Corporate Tax Law or,
4. The person undertaking Non-Extractive Natural Resource Business as per Article 8 of the UAE Corporate Tax Law or,
5. Non-Resident deriving UAE sourced income but doesn’t have Permanent Establishment (PE) in UAE.

Note: If certain entities become Taxable Persons under the UAE Corporate Tax Law and have to register for the Corporate Tax, these entities can register for the same notwithstanding this decision by MOF of exemption:

1. Government Entity;
2. Government Controlled Entity;
3. Extractive Business;
4. Non-Extractive Natural Business.

Publication and Application

The decision by MOF will be published and will become effective from the day after publication.

Conclusion

Thus, it can be concluded that these five entities are exempted from registration under the UAE Corporate Tax Law. Though, if they become a Taxable Person, then, they have to register for the same.

To know more about the regulations governing Tax Registration under the UAE Corporate Tax Law, refer to our article on “Registration and Deregistration under UAE Corporate Tax “