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.
