UAE Corporate Tax Law (Law 47 of 2022) – Exemption for Qualified Public Benefit Entities

By Shahram Safai and Mevan Bandara

Pursuant to Article 9 of the Corporate Tax Law, a Qualifying Public Benefit Entity will be exempt from Corporate Tax if the conditions set out in Article 9 (1) of the Corporate Tax Law are met. In order to benefit from this exemption, Article 9 (2) also requires the Qualifying Public Benefit Entity to be listed in a Cabinet Decision. Yesterday, on 24 April, the schedule to the Cabinet Decision 37 of 2023, listed the names of the Qualified Public Benefit Entities. The UAE Ministry of Finance has also clarified that Qualified Public Benefit Entities are eligible for tax exemption under the Corporate Tax Law because they are established and operate for the wider public benefit, such as charitable, religious, cultural, healthcare and educational purposes. Pursuant to Article 9 (3) of the Corporate Tax Law, the Federal Tax Authority may routinely request relevant information or records from a Qualifying Public Benefit Entity to monitor the continued compliance of the Qualifying Public Benefit Entity.

 

Donations, grants or gifts to a Qualifying Public Benefit Entity may be allowed as deductible expenditures for Corporate Tax purposes pursuant to the Corporate Tax Law. ■

Download Client Alert as PDF