FTA-Registered & Regulated Tax Agent
We help UAE businesses determine and secure their corporate tax exemption status under Federal Decree-Law No. 47 of 2022, whether that means Small Business Relief, Qualifying Free Zone Person (QFZP) status, or a formal FTA exemption.
We handle eligibility assessment, documentation, and filing through the FTA portal, and make sure you don’t miss the one requirement that catches most businesses: registration is mandatory even if you end up owing no tax.
- Assess your eligibility for Small Business Relief, QFZP status, or formal exemption
- Prepare and submit accurate documentation through the FTA portal
- Handle your mandatory registration, even where no tax is ultimately payable
- Make active elections on time, so you don’t lose relief you qualified for
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Meet Our Corporate Tax Specialists
Md. Kamruzzaman
Senior Tax Consultant
Mohammed Ghoraba
Tax Agent & Court Expert
Ahmad Ali Jourieh
Senior Tax Agent
Anas Al Salman
CT/VAT Senior Tax consultant
UAE Corporate Tax Exemption Law & FTA Compliance Rules
Corporate tax exemptions in the UAE are governed by Federal Decree-Law No. 47 of 2022. Certain entities, government bodies, QFZPs, qualifying public benefit organisations, and a few others, may be exempt from paying corporate tax, but exemption is not the same as being outside the system.
Every one of these entities must still register with the Federal Tax Authority, maintain documentation, and meet ongoing eligibility conditions. Failing to register, or incorrectly claiming an exemption you don’t qualify for, leads to penalties and reassessment, not a quiet pass.
Types of Corporate Tax Exemptions in UAE
UAE tax law provides multiple exemption categories based on entity type and activity. Each exemption requires strict compliance and supporting documentation.
| Type | Eligibility | Requirement |
|---|---|---|
| QFZP | Free Zone Companies | Qualifying income and economic substance |
| Small Business Relief | Revenue below AED 3 Million | Active annual election through the FTA, available only until 31 December 2026 |
| Government Entities | Federal and local government bodies | Separation of business and non-business activity |
| Public Benefit Entities | Charities and qualifying non-profits | FTA approval and non-profit eligibility conditions |
Small Business Relief (SBR)
If your UAE business earns AED 3 million a year or less, Small Business Relief lets you pay zero corporate tax for that year. It runs from 2023 through 2026, and there’s no extension announced yet, so 2026 is the last year you can use it. Two things trip businesses up:
- It’s not automatic. You have to actively claim it on your tax return, within 9 months of your year-end. Miss that deadline, and you lose the relief for that year, no exceptions.
- Revenue alone doesn’t guarantee it. If you’re part of a large multinational group (over AED 3.15 billion combined revenue) or you’re a Qualifying Free Zone Person, you can’t claim SBR, even if your own revenue is under AED 3 million.
Qualifying Free Zone Person (QFZP): 0% Tax Status
Free Zone companies can retain a 0% corporate tax rate if they qualify as a QFZP under FTA conditions: maintaining real economic substance in the UAE, earning qualifying income, preparing audited financial statements under IFRS, and complying with transfer pricing rules. Non-qualifying income is still taxed at 9%, and losing QFZP status at any point means the full 9% rate applies going forward, not just to the non-compliant income.
Government Entities
Federal and local government bodies are exempt from corporate tax on their government, non-business activities. Where a government entity also carries out a business activity under a licence, that activity is taxed separately, the exemption doesn’t extend to it automatically. Government entities still need to maintain clear separation between exempt and taxable activity in their records.
Public Benefit Entities
Charities and qualifying non-profit organisations can be exempt from corporate tax, but this isn’t automatic on formation. The entity must apply for and receive FTA approval as a Qualifying Public Benefit Entity, meet the non-profit eligibility conditions, and continue meeting them, an entity that stops operating on a genuine non-profit basis can lose its exemption going forward.
Documents Required for Corporate Tax Exemption UAE
Incomplete submissions are one of the most common reasons an application gets delayed or rejected. Depending on the exemption or relief you’re applying for, you’ll typically need:
- Trade licence
- Incorporation certificate
- Audited financial statements
- Tax registration details
- Income reports
- Free Zone certificate or eligibility proof (for QFZP applications)
- Government status documentation (for government entity claims)
Registration and Compliance, Even If You’re Exempt
Every UAE business must register for corporate tax with the FTA, regardless of exemption status. Exempt entities still submit annual declarations and maintain proper financial records.
Late registration carries a fixed penalty of AED 10,000, on top of any other filing penalties that apply. See our full guide to corporate tax penalties for the complete breakdown.
Incorrectly claiming an exemption carries a bigger risk than a fine. If the FTA later finds you didn’t actually qualify, it can reassess your tax position retroactively, treating you as if you’d owed tax all along, back to when you first claimed the exemption, plus penalties and interest on top. Exemption reduces your tax bill, it doesn’t reduce your filing obligations, and getting the eligibility wrong can cost more than paying the tax would have in the first place.
Corporate Tax Exemption Experts UAE
We provide eligibility assessment, documentation, and filing support for QFZP status, Small Business Relief, and formal FTA exemptions. Why businesses work with us:
- Experienced UAE corporate tax consultants who track FTA guidance as it’s issued
- Hands-on support through the exact QFZP and SBR eligibility tests, not just general advice
- Full documentation preparation and portal filing, so nothing gets rejected for a missing document
- Active election tracking, so you never miss a Small Business Relief deadline
If you’re not sure whether your business qualifies for an exemption, the SBR window closing at the end of 2026 makes this worth checking now rather than later.
