UAE Corporate Tax: Exemption vs 0% Rate vs Exempt Income

A corporate tax exemption is different from (i) a 0% Corporate Tax rate, and (ii) Exempt Income rules that may apply to specific income streams when calculating Taxable Income.

In other words, an entity can be within the Corporate Tax regime and still have a 0% rate or Exempt Income treatment without being an Article 4 Exempt Person.

Exemption can be automatic (i.e. granted directly by the law) or conditional – requiring application, approval and ongoing compliance.