Important changes in tax legislation in the UAE

The Ministry of Finance of the UAE has published a list of individuals and companies exempt from registration for paying corporate tax

The Ministry of Finance of the United Arab Emirates has published a list of organizations that will be exempt from mandatory income tax. This list includes public organizations working in the field of religion, science, charity, education and culture. Organizations must comply with the provisions of the Corporate Tax Law (Regulation 9) and comply with the laws of the UAE.

A list of individuals and companies exempt from registration for corporate tax has also been published. This list includes government organizations, companies related to natural resources, and non-residents who receive income only from sources in the UAE and do not have a representative office in the country.

Small businesses with an income of less than 3 million dirhams for each tax period can apply for participation in the assistance program. The Ministry of Finance has decided to exempt small businesses from paying corporate tax, the introduction of which is scheduled for June 1, 2023. This rule will apply to tax periods beginning on or after June 1, 2023, but will not apply to tax periods ending before or inclusive of December 31, 2026.

Revenues will be determined using accounting standards adopted in the UAE. If the income of a taxable person does not exceed a certain threshold, according to Article 21 of the Corporate Tax Law, it will not be considered taxable income in this tax period.

However, companies registered in free economic zones or multinational groups of companies will not be eligible for the benefits provided to small businesses. This applies to groups of companies operating in several countries and having consolidated revenue of more than 3.15 billion