The UAE Ministry of Finance has announced a new cabinet decision in April exempting qualifying public benefit entities from paying corporate tax. These qualifying public benefit entities are typically established for the welfare of the public and society such as religious, charitable, scientific, educational, or cultural entities. To be eligible for the exemption, these entities must meet certain conditions under the Corporate Tax Law.
The decision provides certainty and transparency for taxpayers as donations and gifts will be allowed as deductible expenditure for Corporate Tax purposes if they are made to a Qualifying Public Benefit Entity listed in the cabinet decision.
The UAE Corporate tax law’s rates are 0 % on the portion of the taxable income below 375,000 AED and 9 % on taxable income that exceeds AED 375,000 AED (approx. 93,000 Eur). The law also exempts government entities, government-controlled entities, persons engaged in an extractive business, qualifying investment funds, public and private pension or social security funds subject to regulatory oversight of the competent state authority, and other entities that may be determined in a decision issued by the Cabinet at the suggestion of the Minister.
Are you interested to know more about the new corporate tax law in the UAE and whether it applies to you? Drop us an email (office@alphaprimedwc.ae) or give us a call (+971 58 515 2374) at any time.
