UAE corporate tax: Maximise benefits by enjoying exemptions and opting reliefs

UAE corporate tax: Maximise benefits by enjoying exemptions and opting reliefs

Published: Sun 19 May 2024, 4:18 PM

The UAE corporate law exempts certain businesses from the obligation to register for corporate tax, while others are liable to register. However, the registered businesses can benefit from reliefs while calculating their taxable income. This article provides a summary of the key reliefs and exemptions available to businesses in the UAE.

Certain resident juridical persons, such as government entities, government-controlled entities, businesses engaged in natural resource extraction, those involved in non-extractive natural resource businesses, and natural persons with business revenue below Dh1 million in a Gregorian calendar year, are exempt from corporate tax. Other entities and funds, such as pension funds, social security funds, qualifying public benefits entities, qualifying investment funds etc. established for public welfare, are obligated to register but can apply for exemption from corporate tax after registration.

Small business relief is available to resident taxable persons except the qualifying free zone person (QFZP) and member of multinational enterprise (MNE), whose business revenue in the current tax period and any prior periods does not exceed Dh3 million. Businesses meeting these criteria and availing for small business relief are exempt from corporate tax for the tax period ending on or before December 31, 2026.

The QFZPs