Ministry of Finance has issued Ministerial Decision No, 37 of 2023 on Corporate Tax Exemption to Qualifying Public Benefit Entities for the purposes of the Federal Decree Law No. 47 of 2022 on Taxation of Corporations and Businesses (“CT law”).
Below are the key highlights of the decision-
1. Qualifying Public Benefit Entities:
- The Qualifying Public Benefit Entities specified in the schedule by cabinet are exempt from Corporate Tax.
- The Government Authorities shall inform the Ministry of any changes occurring to these entities that impact their status as a Qualifying Public Benefit Entity.
2. Amendment to the Schedule of Public Benefit Entities:
- The Government Authority may submit a request to the Ministry to change, add or remove the entities from the schedule of Qualifying Public Benefit entities .In addition to this, Ministry shall also be provided with all data, documents and information it may require to decide.
- The Cabinet, based on the approval of Ministry, may make any relevant modifications in the schedule of Qualifying Public Benefit entities.
3. Request for Information:
- The Qualifying Public Benefit entity shall provide the Ministry and the Authority with all relevant documents, data and information to verify that the Qualifying Public Benefit entity fulfils the requirements mentioned in the Corporate Tax Law.
- The Ministry and the Authority may exchange data, information and documents between them relating to any Qualifying Public Benefit entity and its activities.
4. Registration with FTA for Corporate Tax:
The Qualifying Public Benefit entities mentioned in the schedule are required to register with Federal Tax Authority and obtain Corporate Tax registration number.
5. Deductible Expenses for Taxpayer:
Taxpayers giving donations, grants and gifts will be recognized as deductible expenses for corporate tax purpose , if they are given to Qualifying Public. Benefit entity mentioned in the schedule.