Legislation Details
- Full Title: Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses
- Law Type: Federal Decree-Law
- Law Number: No. (55) of 2025
- Issued Date: 02 May 2025
- Effective Date: 01 Jun 2023
- Official Gazette: No. 799
- Sector: Tax
- Status: Active
- Number of Articles: 8
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law exempts certain persons from the corporate tax imposed under Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. It defines the criteria for exemption and the types of activities that qualify for the exemption. The law aims to provide tax relief for specific entities and individuals, which can have a significant impact on their financial obligations and operations in the UAE. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 1-3)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to exempt certain persons from the corporate tax imposed under Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. The purpose is to provide tax relief for specific entities and individuals that meet the criteria outlined in the law. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 2)
What are the key definitions under this law?
The key definition under this law is:
- Exempt Person: The persons defined in Paragraphs (a), (b), (f), and (g) of Clause (1) of Article (4) of Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 1)
What are the main obligations and requirements?
The main obligation under this law is that a Taxable Person established or incorporated under the legislation of another country or foreign jurisdiction must be fully owned or controlled by the Exempt Person defined in the law in order to be exempt from the corporate tax. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 2)
What exemptions or exceptions apply?
The law provides an exemption from the corporate tax for a Taxable Person established or incorporated under the legislation of another country or foreign jurisdiction, if the following conditions are met: 1. It is fully owned or controlled by the Exempt Person defined in the law. 2. It conducts any of the following activities: a. Exclusively conducts the business of the Exempt Person in whole or in part. b. Exclusively holds assets or invests funds for the benefit of the Exempt Person. c. Exclusively carries out activities that are ancillary to the activities conducted by the Exempt Person. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 2)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with this Cabinet Resolution. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to and issued for the purposes of Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. It provides an exemption from the corporate tax imposed under that law for certain persons and entities that meet the specified criteria. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 1-2)
When did this law come into effect?
This Cabinet Resolution shall enter into force as of June 1, 2023. (Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses, 2025, Art. 3)
Source Documents
This article analyses Cabinet Resolution Exempting Certain Persons from the Corporate Tax for the Purposes of Federal Decree by Law Regarding Taxation of Corporations and Businesses for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.