Latest news with #CabinetDecisionNo.
Mid East Info
21-05-2025
- Business
- Mid East Info
Ministry of Finance Announces Issuance of Cabinet Decision Expanding the Scope of Corporate Tax Exemption - Middle East Business News and Information
The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025 on Exempting Certain Persons from Corporate Tax for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities —such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant conditions. Prior to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities (such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds), or even if they operated through branches in the UAE, were not eligible for exemption. The extension of the exemption to include such incorporated foreign entities—provided their activities meet the relevant conditions—aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices.
Business Recorder
21-05-2025
- Business
- Business Recorder
UAE: corporate tax exemption to extend to some foreign firms
The UAE's Ministry of Finance announced that certain foreign companies will be eligible from corporate tax exemptions. 'The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities —such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant conditions,' it said in a press release. The idea is 'to ensure equal tax treatment between local and foreign entities owned by certain exempt entities,' the ministry explained. 'It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices,' it added. Prior to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities, or even if they operated through branches in the UAE, were not eligible for exemption. 'For investors and businesses, the message is clear: the tax regime may be new, but it's moving in the right direction,' business lawyer Kamal Jabbar told Business Recorder. He said that the UAE's corporate tax regime is still in its infancy and these latest changes are part of a broader effort to refine how it applies in practice. 'This latest change — extending exemptions to foreign companies fully owned by UAE government entities — ensures these entities aren't penalised simply because their structure is offshore,' he explained. According to him, waiving penalties and refunding fines shows a clear intent: support compliance, not punish missteps. 'It also signals that the Federal Tax Authority (FTA) is listening and adjusting,' he said, adding that 'on a macro level, corporate tax is not just a revenue tool—it's a catalyst for greater transparency and accountability in the UAE's corporate landscape.' Three weeks ago, the ministry and the Federal Tax Authority announced an initiative to waive administrative penalties for corporate taxpayers and certain exempt persons who failed to submit their tax registration applications with the FTA within the required timeframe. 'The initiative reaffirms the continued commitment of the Ministry of Finance and the Federal Tax Authority to enhancing the tax compliance environment in the UAE, facilitating procedures, and easing financial burdens on businesses,' it had said at the time.
Hi Dubai
21-05-2025
- Business
- Hi Dubai
Ministry of Finance Expands Corporate Tax Exemptions to Foreign-Owned Entities
The UAE Ministry of Finance has issued a new decision expanding corporate tax exemptions to certain foreign-owned entities, aligning the nation's tax framework more closely with global standards. Under Cabinet Decision No. (55) of 2025, foreign entities that are wholly owned by specific exempt persons — including government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds — can now qualify for corporate tax exemption, provided they meet the prescribed conditions. Previously, exemptions under Federal Decree-Law No. (47) of 2022 were limited to entities incorporated within the UAE. Foreign entities, even those fully owned by exempt bodies or operating through UAE branches, were excluded from the tax break. The Ministry stated that the updated policy ensures consistent tax treatment between domestic and foreign entities under common ownership by exempt persons. This change aims to enhance the UAE's appeal as a base for holding companies and supports its broader goal of maintaining a fair, transparent, and competitive tax regime. The decision is part of the UAE's continued efforts to align with international tax standards while supporting investment-friendly policies that strengthen its global economic position. News Source: Emirates News Agency
Sharjah 24
20-05-2025
- Business
- Sharjah 24
MoF expands scope of corporate tax exemption
Expanded scope of exemption The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities — such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant conditions. Previous limitations on foreign entities Prior to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities (such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds), or even if they operated through branches in the UAE, were not eligible for exemption. Aiming for fair tax treatment The extension of the exemption to include such incorporated foreign entities — provided their activities meet the relevant conditions — aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices.
Al Etihad
20-05-2025
- Business
- Al Etihad
Ministry of Finance announces issuance of Cabinet Decision expanding scope of Corporate Tax Exemption
20 May 2025 17:11 ABU DHABI (ALETIHAD) The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025 on Exempting Certain Persons from Corporate Tax for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities —such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities (such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds), or even if they operated through branches in the UAE, were not eligible for exemption. The extension of the exemption to include such incorporated foreign entities—provided their activities meet the relevant conditions—aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices.
