The UAE Ministry of\nFinance has issued Ministerial Decision No. (105) of 2023 on Determination of Conditions\nunder which a Person may Continue or Cease to be Deemed an Exempt Person, which\nhelps to clarify the application of the Corporate Tax Law, ensuring a\ntransparent and efficient tax system that promotes business growth in the UAE.<\/p>\n\n\n\n
The Decision clarifies\nrules to ensure that businesses remain eligible for a Corporate Tax exemption\nif they fail to meet the relevant exemption conditions under certain circumstances.\nThese include a business undergoing liquidation or termination provided that a\nnotification has been submitted to the Federal Tax Authority (\u201cFTA\u201d) within\n(20) twenty business days from the date of the beginning of the liquidation or\ntermination procedure.<\/p>\n\n\n\n
His Excellency Younis\nHaji Al Khouri, Undersecretary of the Ministry of Finance, highlighted the\nimportance of the decision to ensure a transparent and efficient tax system\nthat promotes business growth in the UAE. \n“The new Ministerial Decision clarifies the conditions under which\na Person may continue or cease to be an Exempt Person from a different date as a\nresult of an event or situation that goes beyond the Person\u2019s control and could\nnot have been reasonably foreseen or prevented.”<\/p>\n\n\n\n
In such situations, the\nPerson shall submit an application to the FTA within (20) twenty business days from the date it\nfails to meet the conditions to be exempt. The Person is also expected to\nrectify the failure to meet the conditions within (20) twenty business days\nfrom the submission of the application. This period may be extended by an\nadditional (20) twenty business days if the failure to rectify is beyond the\nPerson\u2019s reasonable control.<\/p>\n\n\n\n
Additionally, the\nMinisterial Decision addresses cases where a business no longer meets exemption\nconditions primarily to gain a corporate tax advantage. In such cases, the\nbusiness will cease to be considered\nexempt on the date it no longer fulfils the exemption conditions. <\/p>\n\n\n\n
Cabinet and Ministerial Decisions relating to the Corporate Tax Law are available on the Ministry of Finance’s website: www.mof.gov.ae <\/p>\n","protected":false},"excerpt":{"rendered":"
The UAE Ministry of Finance has issued Ministerial Decision No. (105) of 2023 on Determination of Conditions under which a Person may Continue or Cease to be Deemed an Exempt Person, which helps to clarify the application of the Corporate Tax Law, ensuring a transparent and efficient tax system that promotes business growth in the …<\/p>\n","protected":false},"author":5,"featured_media":49834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-53558","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news"],"_links":{"self":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/comments?post=53558"}],"version-history":[{"count":1,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53558\/revisions"}],"predecessor-version":[{"id":53559,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53558\/revisions\/53559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media\/49834"}],"wp:attachment":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media?parent=53558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/categories?post=53558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/tags?post=53558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}