The Ministry of Finance has issued a new decision, Ministerial Decision No. 43 of 2023, which provides an exception from tax registration for the purposes of the Corporate Tax Law in accordance with Article 51.
The decision specifies that certain entities such as government and government-controlled entities, extractive businesses and non-extractive natural resource businesses meeting the necessary conditions, are not required to register for Corporate Tax.
Non-resident individuals earning only UAE-sourced income and without a Permanent Establishment in the UAE are also exempt from Corporate Tax registration, according to WAM.
The decision is in line with international practices as exempt entities are not subject to tax and therefore are not required to register with the Federal Tax Authority as long as they meet the exemption criteria specified in the relevant articles of the Decree-Law.
