Abu Dhabi: The Ministry of Finance, on Sunday, unveiled a new UAE Cabinet decision that provides Corporate Tax Law exemption to entities that contribute to the welfare of the public and society in the UAE if they meet specific criteria.

The Ministry said Cabinet Decision No. (37) of 2023 has been passed regarding the Qualifying Public Benefit Entities for Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

It is designed to ensure that entities existing and operating for the wider public benefit are eligible for tax exemption.

Qualifying public benefit entities are established for the public's and society's welfare, focusing on activities which contribute to the fabric of the UAE. Typically, this focuses on public interest, promoting philanthropy, community services or corporate and social responsibility. This implementing decision is designed to reflect these entities' important role in the UAE, which often includes religious, charitable, scientific, educational, or cultural values.

To be eligible for CT 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.

More to follow.