Exempt Persons UAE Corporate Tax: Article 4 Full List

An entity qualifies for exemption only if it falls within the categories explicitly recognized by the UAE Corporate tax Law and meets relevant conditions. Exempt Persons are a separate legal category under the Corporate Tax Law and are not subject to Corporate Tax while their exemption conditions continue to be met.

Exemption is not based solely on size or industry alone. The United Arab Emirates classifies based on legal status, purpose of the business operating and corresponding regulatory supervision.

1. Government Entities: Federal and local government departments, authorities, and public bodies are automatically exempt.
2. Government-Controlled Entities: Certain specified entities owned or controlled by the government that carry out sovereign or prescribed activities.
3. Qualifying Public Benefit Entities: Charities and non-profit organizations organized for social, religious, cultural, or charitable purposes that are listed in a Cabinet Decision after approval by the Ministry of Finance.
4. Qualifying Investment Funds: Investment funds that meet regulatory oversight conditions and specific criteria under the law.
5. Pension and Social Security Funds: Public or private pension and social security funds operating in the UAE under regulatory compliance.
6. Subsidiaries of Exempt Persons: Wholly owned and controlled UAE subsidiaries of certain exempt persons that perform specific predefined activities or hold assets for them