Corporate Tax

UAE Tax Exempt? You Still Have to File (2025 Guide)

Are You Exempt From UAE Corporate Tax? You Still Have a Filing Duty.

Many business owners believe that being "exempt" from UAE Corporate Tax means they have no paperwork to file with the Federal Tax Authority (FTA). This is a costly mistake.

Even if your organization pays zero tax, you are legally required to submit an annual declaration to the FTA.

This rule exists to maintain transparency and to prove your organization continues to meet the specific conditions for its tax-free status. This guide shows you exactly who needs to file, what is required, and when the deadlines are for the 2025/2026 tax period.

Who Qualifies as an Exempt Person?

The UAE Corporate Tax Law lists several types of Exempt Persons:

Organizations in the Extractive Business.
Organizations in the Non-Extractive Natural Resource Business.
Qualifying Public Benefit Entities, like registered charities.
Qualifying Investment Funds.
Public and private pension or social security funds.
Entities entirely owned and run by another exempt organization.
Any other group named in a future Cabinet resolution.

The Annual Filing Requirement

A specific set of exempt groups must complete the yearly filing.

Which Groups Must File?

This annual declaration is mandatory for:

Qualifying Public Benefit Entities
Qualifying Investment Funds
Public and Private Pension Funds
Entities owned and controlled by any of the above groups

What to Confirm in Your Filing

Your declaration serves as a formal notice to the FTA that confirms two critical facts:

You met all exemption rules for the entire year. Your activities and status never broke the conditions that make you tax-exempt.
Your official records are current and correct. All information the FTA has about your organization is accurate.

Your Filing Deadline

Thedeclaration must be submitted within nine months after the end of your financial year.

Real-World Example: If your organization's financial year ends on December 31, 2024, your filing deadline is September 30, 2025.

Why This Filing is Not Optional

Submitting this declaration is a serious legal obligation. Ignoring it can cause real problems for your organization.

Prevent Government Fines: Failing to file on time will lead to financial penalties from the FTA.
Protect Your Tax-Exempt Status: This filing is your proof that you continue to qualify for exemption. Neglecting it could put your status at risk during an audit.
Maintain Good Standing: Consistent, timely compliance shows the FTA that your organization is well-managed and transparent.
Encourage Accurate Bookkeeping: The annual requirement pushes your organization to keep its financial records clean and up-to-date.

Get Professional Help and Stay Compliant

The tax rules have specific details that are easy to miss. An error in your declaration could attract unwanted attention from the FTA.

Our tax specialists ensure your organization remains fully compliant. We can help you confirm your status, prepare the paperwork correctly, and file it on time.

Schedule a Free Consultation to Protect Your Status

Salah Bayoumi

Salah is a qualified Tax Consultant with over 5 years of experience gained in distinct intricate tax matters, he has high expertise in conducting tax negotiations and investigations with the Federal Tax Authority and other external Tax Bodies. He is well-versed with reviewing and drafting tax documents, upon tax preparation and filing. Salah has also advised on a plethora of tax matters, he draws much attention to tax filing procedures and to offering professional investigations to underlying tax complexities.