In a big regulatory change, the UAE has introduced a corporate tax on business profits to make the country a leading global hub for business and investment. At a 9% rate, the UAE corporate tax is one of the lowest in the world, which will give a competitive edge to businesses. The UAE corporate tax is slated to come into force from 1st June 2023.
Against this backdrop the businesses incorporated in the UAE are advised to assess their tax obligations and prepare in advance. Consulting with Spancom Technologies will come in handy for businesses to ensure corporate tax compliance. Tax consultants can help businesses determine not they fall within the scope of corporate tax in the UAE.
The UAE government has published a consultation document that details the type of entities that will be subject to the corporate tax regime. The document also lists certain entities that are exempted from the UAE corporate tax. This article describes in detail the entities that enjoy exemption from corporate tax in the UAE.
Government and Government owned entities
The UAE companies wholly owned by the government that carries out a sovereign or mandated activity will be exempt from the UAE corporate tax. The UAE subsidiaries of such government-owned companies can also apply for exemption from corporate tax provided they carry out part or whole of the sovereign or mandated activity or ancillary activities.
