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Tax Exemptions for Qualifying Public Benefit Entities

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It is noteworthy that UAE has announced the introduction of Corporate Tax from 1st June 2023, at a nine percent rate for taxable business profits exceeding AED375,000. The new Federal Decree-Law No. (47) of 2022 on Corporate and Business Tax, was announced in December 2022 and is set to come into effect for financial years starting June 1, 2023.

The Ministry of Finance has issued a new UAE Cabinet Resolution No. (37) of 2023 regarding the Corporate Tax exemptions to Qualifying Public Benefit Entities, for the purposes of Federal Decree-Law No. (47) of 2022 on the Corporate Tax Law.

These Public Benefit Entities include organisations that operate exclusively for religious, charitable, scientific, artistic, cultural, athletic, educational, healthcare, environmental, humanitarian, animal protection or other similar purposes. As a professional entity, chamber of commerce, or a similar entity operated exclusively for the promotion of social welfare or public benefit.

They must meet the conditions under Article (9) of the Corporate Tax Law and comply with the local and federal laws. The Cabinet may change, add, or remove entities from the list of Qualifying Public Benefit Entities. They should notify the Ministry of Finance of any changes in listed QPBEs that impact their eligibility to qualify for tax exemption, within (20) working days of the occurrence of the changes.

The entities should also register in the Federal Tax Authority and acquire a tax registration number for Corporate Tax purposes.




Pascale Dona
By Pascale Dona
Senior Legal Editor

Pascale Dona joined Thomson Reuters in 2014 as Content Specialist. In 2007, Pascale graduated from the Lebanese University with a Bachelor’s Degree in Law, then moved to France and completed her Master’s degree in International Law from Nice Sophia Antipolis University. Pascale has more than 10 years of experience as legal Specialist in Lebanon and UAE. She is a native Arabic speaker and proficient in English and French.

Pascale is currently a Senior Legal Editor for Thomson Reuters MENA. She is based in Dubai and is responsible for maintaining and providing the latest legal content for the MENA region.

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