Loss of Exempt Status UAE Corporate Tax: What Happens

If exemption conditions are breached or such businesses carry out activities outside the permitted scope, the entity ceases to be exempt from the start of the Taxation Period.

The entity is now treated as a single taxable person. The loss of exemption applies from the start of the tax period in which conditions were not met.

Limited exceptions apply if in certain cases, the failure to meet conditions is “temporary” and corrective measures are promptly taken. However, this is not automatically the case and continued monitoring is advised to retain exempt status.