The Ministry of Finance has\nissued Ministerial Decision No. 43 of 2023 on Exception from Tax Registration for\nthe purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of\nCorporations and Businesses (the \u201cCorporate Tax Law\u201d).<\/p>\n\n\n\n
The decision\nis issued in accordance with Article 51 of the Corporate Tax Law which requires\ntaxable persons to register for Corporate Tax with the Federal Tax Authority, except in certain circumstances.<\/p>\n\n\n\n
The Ministerial Decision on\nthe Exception from Tax Registration sets out who would be excluded from\nregistering for Corporate Tax.<\/p>\n\n\n\n
Certain exempt persons such as\ngovernment entities, government-controlled entities, as well as extractive\nbusinesses and non-extractive natural resource businesses that meet the\nnecessary conditions under the Corporate Tax Law are not required to register\nfor Corporate Tax purposes. <\/p>\n\n\n\n
A non-resident person will also\nnot be required to register for Corporate Tax if they only earn UAE-sourced\nincome and do not have a Permanent Establishment in the UAE.<\/p>\n\n\n\n
The exception stipulated in\nthe decision is in line with international best practices, whereby persons\nexempted from Corporate Tax such as the federal government, UAE government\ndepartments and authorities, other public institutions and other categories\nreferred to above are excepted from tax registration because they are not\nsubject to tax. Therefore, there is no\nneed for these entities to register with the Federal Tax Authority as long as\nthey continue to meet the exemption conditions, noted in the relevant articles\nof the Decree-Law.<\/p>\n\n\n\n