Photo for illustrative purposes only. ARCHIVE

UAE announces entities exempted from corporate tax

The Ministry of Finance in the UAE has announced on Monday (April 10) the exemptions for entities and non-resident persons from registration for corporate tax. It will be in force starting from June 1. In 2022, the Ministry had announced that companies and freelancers, earning Dh375,000 and above, were obliged to nine percent corporate tax, requiring them to enroll for tax registration. However, the recently issued statement of the Ministry stated that government-controlled entities, including extractive businesses and non-extractive natural resource businesses that meet the necessary conditions under the corporate tax, have been exempted and are not required to register. Furthermore, a non-resident person, who only earns UAE-sourced income and has no permanent place in the UAE, is also not required to register. The corporate tax and compliance costs of small and micro businesses, startups, and freelancers, with revenues of Dh3 million or less, were also reduced as part of the Small Business Relief Initiative. According to the Ministry, this move intends to support start-ups and other small businesses. RZSP/Expat Media
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