Newsletter | Corporate Tax – No.4

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

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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.

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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”
❖ shall keep taxable
income separately

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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

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Refer : Article 1,4,9,10 of the Tax Law

UAE Corporate Tax
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