Taxability of “Government Entity”
Article 5 of the UAE Corporate Tax Decree (“Law”) addresses the following provisions related to Government Entities
Provisions relating to Adjustments
General exemption of Government Entities
A Government Entity
shall be exempt from
the levy of Corporate
Tax on its revenues and
expenses under the
UAE CT-Law
When does a Government Entity become Taxable
If a Government Entity
conducts a Business or
Business Activity under
a License issued by a
Licensing Authority, it
will be subject to the
levy of CT on its taxable
revenues and expenses.
Consequences of Taxable Business a Government Entity
Shall be treated as
independent business
❖ Transactions between
such Business and
other activities the
Government Entity
shall be considered
“Related Party”
transactions
❖ shall keep taxable
income separately
Procedure for claiming exemption
A Government Entity
may apply to the
Authority for all its
Businesses and
Business Activities to
be treated as a single
Taxable Person for the
purposes of this
Decree-Law subject to
meeting the
conditions to be
prescribed by the
Minister
Refer : Article 1,4,9,10 of the Tax Law