10 April 2023: The Ministry of Finance has released Ministerial Decision No. 43/2023, which outlines exceptions from tax registration for certain entities under Federal Decree-Law No. 47/2022On the Taxation of Corporations and Businesses.
This decision is based on Article 51 of Federal Decree-Law No. 47/2022On the Taxation of Corporations and Businesses, which requires taxable individuals to register for Corporate Tax with the Federal Tax Authority, except in specific circumstances.
Exempt persons, including government and government-controlled entities, as well as extractive and non-extractive natural resource businesses which meet the necessary conditions, are not required to register for Corporate Tax.
Additionally, non-resident individuals who only earn UAE-sourced income and do not have a Permanent Establishment in the UAE are also exempt from registration.
This decision aligns with international best practices, where exempt persons are not subject to tax, and therefore do not need to register with the Federal Tax Authority as long as they continue to meet the exemption conditions.
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