The Ministry of Finance has issued Ministerial Resolution No. (43) of 2023 which exempts certain entities from tax registration under the Corporate Tax Law stipulated by Federal Decree-Law No. (47) of 2022. According to Article No. (51) of the Companies Tax Law, taxable groups are required to register for corporate tax with the Federal Tax Authority, except in certain cases. The ministerial decision identifies categories which are excluded from registering for corporate tax, such as government agencies and agencies affiliated with the government, extractive businesses, and non-extractive natural resource businesses that meet the specified conditions. Non-resident individuals generating income solely in the UAE and without a permanent establishment in the state are also exempt from registration for corporate tax. The decision aligns with international standards by exempting categories which are not subject to tax, such as UAE governments and public institutions, as long as they continue to meet the exemption criteria outlined in the Decree-Law. The announcement includes social media sharing links and an externalized amp-list template.
The Ministry of Finance issued Ministerial Resolution No. (43) of 2023 regarding the exemption from tax registration for the purposes of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax (Corporate Tax Law).
The ministerial decision was issued regarding the exemption from tax registration, in accordance with the provisions of Article No. (51) of the Companies Tax Law, which obliges taxable groups to register for corporate tax with the Federal Tax Authority, except in certain cases.
The ministerial decision regarding exclusion from tax registration identifies the categories that will be excluded from registration for corporate tax, as some categories exempt from “corporate tax” were excluded, such as government agencies and agencies affiliated with the government, in addition to extractive businesses and non-extractive natural resource businesses that meet the conditions. Defined under the corporate tax law, from tax registration for the purposes of the corporate tax law.
A non-resident person was also excluded from registration for corporate tax if he only generates income originating in the state and does not have a permanent establishment in the state.
The exception stipulated in the decision comes in line with international best practices, as categories exempted from tax registration, such as the federal government, UAE governments, departments, authorities, and other public institutions and other categories referred to above, are excluded because they are not subject to tax, and therefore there is no need to register these entities with the Federal Tax Authority. , as long as it continues to fulfill the exemption conditions contained in the relevant articles of the Decree-Law.
In conclusion, the Ministry of Finance’s issuance of Ministerial Resolution No. (43) of 2023 provides exemptions from tax registration for certain categories under the Corporate Tax Law. The decision aligns with international best practices and exempts entities that are not subject to tax, such as government agencies, extractive businesses, and non-extractive natural resource businesses. The exemption also applies to non-resident persons who only generate income within the state and do not have a permanent establishment. This decision will facilitate business operations and reduce the administrative burden on eligible entities.
