Sharjah 24 – WAM: The Ministry of Finance has announced a new UAE Cabinet decision relating to 'qualifying public benefit entities', whereby Public benefit entities are exempted from the corporate tax.

The exemption is designed to reflect the significant role played by public benefit entities, which often include organisations with a focus on areas of religion, charity, science, education and culture.

These entities must continue to comply with all pertinent local, state, and federal laws and notify the Ministry of Finance of any changes that may affect their status as Qualifying Public Benefit Entities in order to be eligible for UAE Corporate Tax exemption. These entities must also meet the requirements under Article (9) of the Corporate Tax Law.

On the Finance Minister's recommendation, the Cabinet may change, add, or remove entities from the list of Qualifying Public Benefit Entities.

Any change that affects the business's ability to continue meeting the requirements outlined in this Decision and the Corporate Tax Law must be reported by an entity that is identified in the schedule attached to the decision.

Qualifying public benefit entities are subject to a number of reporting requirements, mostly to ensure that they continue to meet the requirements for approval.