Abu Dhabi: The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025, which expands the scope of corporate tax exemption. This decision pertains to Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses.
According to Emirates News Agency, the decision now includes foreign entities that are wholly owned by certain exempted entities. These entities include government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, provided they meet the relevant conditions.
Previously, corporate tax exemptions were limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by exempt entities or operating through branches in the UAE, were not eligible for exemption. The new decision seeks to address this by extending exemptions to qualifying foreign entities, provided their activities meet specified conditions.
This measure aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also bolsters the UAE's appeal as a destination for holding companies and demonstrates the country's dedication to maintaining a fair and competitive tax environment that aligns with international standards.