Attention, individuals and legal persons! If you’re engaged in business activities under a commercial license in the UAE, the Corporate Tax awaits your arrival. But fear not, exceptions exist to maintain the balance:
- Entities involved in extracting natural resources remain subject to Emirate-level corporate taxation, aligning with the essence of their operations.
- Entities operating within free zones bask in the glory of tax incentives, as long as they abide by regulations and refrain from conducting business with mainland UAE.
Exemptions Behind the UAE Corporate Tax Realm
In the UAE Corporate Tax world, certain exemptions provide relief and clarity to businesses operating within its jurisdiction. Specifically, two significant exclusions merit attention: capital gains and dividends earned from qualifying shareholdings, and qualifying intra-group transactions and restructurings.
Firstly, capital gains and dividends derived from qualifying shareholdings are exempt from the UAE Corporate Tax. This exemption ensures that businesses and individuals can enjoy the financial benefits arising from their investments in shares, without incurring additional tax burdens. Such qualifying shareholdings refer to investments that meet the specific criteria outlined by the tax regulations. We offer comprehensive services not just in Sharjah but across the entire UAE, ensuring consistent support no matter where you are located.
