FTA has set administrative procedures, filing requirements and deadlines for entities seeking exemption from Corporate Tax under Federal Decree-Law No. 47 of 2022. The rules took effect on 15 September 2026 and replaced the previous exemption procedures.
The UAE’s Federal Tax Authority (FTA) Decision No. 15 of 2026 has established the administrative rules, procedural requirements and filing deadlines for entities applying for Corporate Tax exemption under Federal Decree-Law No. 47 of 2022 (the Corporate Tax Law).
The decision was issued on 8 September 2026 following approval by the FTA Board of Directors and took effect on 15 September 2026. It applies to Tax Periods commencing on or after 1 June 2023 where exemption applications are submitted on or after 15 September 2026.
The decision also formally repealed FTA Decision No. 7 of 2023 from 15 September 2026.
For the purposes of the decision, a Business Day means any day of the week other than official Federal Government holidays and weekends.
Tax registration requirement
Under Article 2, Persons falling within paragraphs (e), (f), (g), (h) and (i) of Clause 1 of Article 4 of the Corporate Tax Law must first register for Corporate Tax within the timelines specified in FTA Decision No. 3 of 2024.
After Tax Registration has been approved, eligible entities covered by paragraphs (f), (g), (h) and (i) can submit an application to the FTA for Corporate Tax exemption, provided they satisfy all applicable legal conditions.
Exemption filing deadlines
Article 3 requires entities to submit an exemption application after the end of the Tax Period in which they met the exemption conditions and no later than 90 Business Days after the end of that Tax Period.
Specific deadlines apply to certain retrospective exemption applications.
Entities falling under paragraph (i) that qualify for retrospective exemption under Cabinet Decision No. 55 of 2025 must submit their applications by 31 December 2026.
Where the relevant Cabinet Decision was issued on or after 1 January 2026, the application must instead be submitted within 90 Business Days from the end of the Tax Period in which the relevant decision was issued.
Juridical persons qualifying under Article 5 of Cabinet Decision No. 34 of 2025, for Tax Periods beginning in 2025 and ending on or before 31 August 2026, must also submit their applications by 31 December 2026.
Rules for wholly owned entities
The decision also sets out procedures for certain wholly owned and controlled juridical persons.
Juridical persons covered by paragraphs (h) and (i) that are wholly owned and controlled by entities falling under paragraphs (f), (g) and (h) may submit an exemption application where the parent or controlling entity has filed an exemption application.
The FTA will hold the subsidiary’s decision until the parent entity’s application has been approved.
Juridical persons under paragraph (h) that are wholly owned and controlled by Government Entities or Government-Controlled Entities covered by paragraphs (a) and (b) may apply by 31 October 2026 for any Tax Period that ended before 1 January 2026.
Effective date of exemption
Once approved by the FTA, the exemption will generally take effect from the beginning of the Tax Period specified in the application.
The FTA may, however, adjust the effective date in certain circumstances.
This includes cases where an incorrect Tax Period was stated on the registration form, allowing the effective date to be adjusted to the start of the correct Tax Period.
The FTA may also adjust the effective date where the applicant was acquired during a Tax Period by an entity eligible under paragraphs (a), (b), (f) or (g) of Clause 1 of Article 4 of the Corporate Tax Law.
