Exempt Person
StatusUAEReviewed November 2026
A person that the UAE Corporate Tax Law places outside corporate tax altogether, such as government entities, businesses extracting natural resources, qualifying public benefit entities, qualifying investment funds and qualifying pension funds. Several categories must apply to, or notify, the Federal Tax Authority, and the status lasts only while its conditions are met.
Being exempt is not the same as being taxed at 0%: an exempt person stands outside the regime, while a qualifying free zone person stays inside it, files returns and can lose its rate. Cabinet Decision No. 55 of 2025 extended exemption to certain foreign companies wholly owned and controlled by an exempt person.
Legal basis
- Federal Decree-Law No. 47 of 2022, Article 4
- Cabinet Decision No. 55 of 2025
How it connects
- Distinct from
- Qualifying Free Zone Person (QFZP): a taxable person at 0%, not one outside the regime
- Tax status of
- Qualifying Investment Fund (QIF): the status a qualifying fund applies for
- Related
Analysis that discusses it
- A UAE family structure is taxable at 9% until it earns its exemptionCorporate Structuring · 10 Oct 2026
- A UAE exemption now has a deadline, and the parent must file firstRegulatory Intelligence · 14 Oct 2026
- A DIFC or ADGM fund can be tax-exempt, the manager cannotCorporate Structuring · 19 Oct 2026
- UAE Cabinet Decision 209 of 2025. Exchange of Information and Record-KeepingRegulatory Intelligence · 5 Jun 2026
A definition of an established legal or tax concept for general information. It is not advice on any individual situation.
More in Cross-border tax
- Economic Substance
- Permanent Establishment
- Controlled Foreign Company
- Corporate Tax Residence
- Double Taxation Agreement
- Transfer Pricing
- Withholding Tax
- Non-Domiciled Status
- Qualifying Free Zone Person
- Central Management and Control
- UAE Corporate Tax
- Qualifying Investment Fund
- Small Business Relief
- Value Added Tax
- Place of Effective Management
- Transfer of Assets Abroad
- Pillar Two
- DEMPE
- UAE Tax Residency Certificate
- Arm’s Length Principle
- Intercompany Loan
- Statutory Residence Test
- Temporary Non-Residence
- Exit Tax
- Substantial Shareholding Exemption
- Participation Exemption
- General Anti-Abuse Rule
- Sham
- Active Income Test
- Deemed Disposal
- Disregarded Income
- Permanent Place of Abode
- Dividend Imputation
Does this apply to your situation?
A director will review your enquiry and respond to scope the work and next steps.