A Guide to Decision No 43 on UAE CT Registration Exemption
The UAE Ministry of Finance (MoF) recently issued a series of Ministerial Decisions corresponding to certain provisions of the UAE Corporate Tax Law. Each Ministerial Decision clarifies specific provisions in the Corporate Tax Law, helping businesses to improve their UAE corporate tax preparation process. In line with this, the Ministerial Decision No. 43 of 2023 provides further clarification on the Entities being exempt from obtaining Corporate Tax Registration in the UAE.
The Ministerial Decision on the Exception from Tax Registration sets out who would be excluded from registering for Corporate Tax in the UAE. Corporate tax consultants in Dubai can help you navigate through the Ministerial Decisions and ensure hassle-free tax compliance. In this article, we offer guidance on Ministerial Decision No 43 on UAE corporate tax Registration Exception. Read ahead for valuable insights:
Key Objective of the Ministerial Decision
The Ministerial Decision No 43 of 2023 has been issued as per the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE Corporate Tax Law). Specifically, the Decision is in line with the Article 51 of the Corporate Tax Law which requires taxable persons to register for Corporate Tax with the Federal Tax Authority, except in certain circumstances. This Decision states the specific circumstances in which entities are not required to register for corporate tax in the UAE. Corporate tax consulting services in Dubai can provide you with more clarity on corporate tax registration requirements.
Who is exempt from UAE corporate tax?
As per the Ministerial Decision No 43 of 2023, the following entities will be exempt from corporate tax registration:
- A Government Entity.
- A Government Controlled Entity.
- A Person engaged in an Extractive Business that meets the conditions of Article 7 of the UAE Corporate Tax Law.
- A Person engaged in a Non-Extractive Natural Resource Business, that meets the conditions of Article 8 of the Corporate Tax Law.
- A Non-Resident Person that derives only State Sourced Income under Article 13 of the Corporate Tax Law and that does not have a Permanent Establishment in the UAE according to the provisions of the Corporate Tax Law.
Important Clause to Consider in the Decision No 43 of 2023
The Ministerial Decision No 43 of 2023 states that Government Entities, Government Controlled Entities, and Persons engaged in Extractive Business and Non-Extractive Natural Resource Business will be required to register for UAE corporate tax if they become Taxable Persons under the provisions of the Corporate Tax Law. If such a situation arises, the relevant entities may consult with consultants providing corporate tax services in Dubai.
When will Decision No. 43 of 2023 take effect?
The Ministerial Decision No. 43 of 2023 was released on April 9th 2023 and it took effect a day after the issuance. Consult with corporate tax advisers in Dubai for more information on the application of the Decision.
Hire the Best Corporate Tax Advisers in Dubai, UAE
Businesses need to carefully read and interpret each Ministerial Decision with regard to the UAE corporate tax requirements. Properly analysing each decision determines your company’s level of UAE corporate tax compliance. However, businesses can hire the best corporate tax consultants in Dubai such as Jitendra Chartered Accountants (JCA) ensure flawless compliance. We are one of the leading corporate tax consulting services in Dubai and across the UAE.
JCA’s corporate tax consulting services in Dubai include CT Assessment & Advisory Services (one-time or retainer basis), CT Transfer price assessment services, CT Compliance Services & CT Agent Services to Represent the Federal Tax Authority (FTA) of UAE in case of any notices served by FTA. Ensure corporate tax compliance and avoid relevant penalties by availing of JCA’s corporate tax services in Dubai, UAE. Talk to our consultants for tax solutions that you can count on.