UAE Ministry of Finance issues decision on Exemption of Tax Registration. Big Relief for Non – Resident Person.

Ministerial Decision No. 43 of 2023 has been issued by the Ministry of Finance. This decision concerns Exemption from Tax Registration for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. 

The following Persons shall not register for Corporate Tax with the Authority: 

1. A Government Entity. 
2. A Government Controlled Entity. 
3. A Person engaged in an Extractive Business
4. A Person engaged in a Non-Extractive Natural Resource Business 
5. A Non-Resident Person who derives only UAE Sourced Income and does not have a Permanent Establishment (PE) in UAE

Persons (a to d above) who do not fulfil the conditions for exemption under Corporate Tax law will be required to register for Corporate Tax.

As someone providing tax consultancy services in Dubai, we are well-versed and updated with financial and legal information. Let’s have a look on the key takeaways from UAE’s ‘Tax Registration Exemption’ decision:

1. The following Persons will be required to register under Corporate Tax law to avail tax exemption:

1. A Qualifying Public Benefit Entity
2. A Qualifying Investment Fund 
3. A public pension or social security fund, or a private pension or social security fund 
4. A juridical person incorporated in UAE that is wholly owned and controlled by an Exempt Person (a to d above)

1. Non-Resident Person Relief:

1. A Non-Resident who derives only UAE Sourced Income and does not have a Permanent Establishment (PE) in UAE does not need to register for Corporate Tax. This reduces the compliance burden.
2. Currently, the withholding tax rate specified in the CT law is also 0% in case of Non-residents earning UAE-sourced income (not having a PE in UAE) and there is no withholding tax compliance at the moment.

Tax Consultants in Dubai can help you navigate the entire process of CT registration. It is definitely not an easy process but that is why the experts are here.

To know further about it, feel free to get in touch with us at Kaizen. We are the best Tax Consultants in Dubai UAE