Several listed subsidiaries of the Adani empire, which spans coal, airports, cement and media, collapsed in early trade, with some losing as much as 20%
business2 days ago
The Ministry of Finance on Sunday announced that entities contributing to the public and community welfare are exempt from the corporate tax, which is set to come into effect this year.
A statement issued by the Ministry said companies involved and focused on public welfare, philanthropy, community services or corporate and social responsibility will be exempt from corporate tax.
This decision is designed to reflect these entities' important role in the UAE, which often includes religious, charitable, scientific, educational, or cultural values, among others.
The UAE last year announced that it would levy a nine per cent corporate tax on companies and freelancers earning Dh375,000 and above, hence, requiring them to enrol for tax registration. The UAE’s corporate tax will be one of the lowest in the world.
To be eligible for exemption, these entities must meet the conditions under Article (9) of the Corporate Tax Law and they must continue to comply with all relevant federal and local laws and notify the Ministry of Finance of any changes occurring to these entities that impact their status as a Qualifying Public Benefit Entity.
The Qualifying Public Benefit Entities should also register with the Federal Tax Authority and obtain a Tax registration number for Corporate Tax purposes.
The ministry said Cabinet may amend the schedule of Qualifying Public Benefit Entities at the suggestion of the Minister by modifying, adding, or removing entities. An entity that is listed in the schedule annexed to the decision must make a notification of any change occurring to the entity.
In addition, various reporting obligations apply to Qualifying Public Benefit Entities, principally to check that they continue to meet the criteria for approval.
This Cabinet Decision also provides further certainty and transparency for taxpayers in relation to their deductible expenditure under Article 33 of the Corporate Tax Law, as donations and gifts will be allowed as deductible expenditure for Corporate Tax purposes if they are made to a Qualifying Public Benefit Entity listed in the Cabinet Decision.
Earlier, the Ministry announced corporate tax exemptions for non-resident persons, government entities, government-controlled entities, as well as extractive businesses and non-extractive natural resource businesses.
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