Expanding The UAE's Corporate Tax Exemption Framework

Introduction

On 2 May 2025, the UAE's Cabinet of Ministers ("Cabinet") issued Cabinet Decision No. 55 of 2025 on the Exemption of Certain Persons from Corporate Tax ("Cabinet Decision No. 55 of 2025"), further solidifying the framework for tax exemptions under the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ("Corporate Tax Law").

Cabinet Decision No. 55 of 2025 introduces new categories of juridical persons that are exempt from Corporate Tax, pursuant to the discretionary powers granted to the Cabinet under Article 4(1)(i) of the Corporate Tax Law. The Decision reflects the UAE's evolving approach to corporate taxation balancing fiscal interests with the need to preserve certain economic, social, and public benefit functions.