Banking & Finance UAE exempts public benefit entities from corporate tax By Pramod Kumar April 24, 2023 Unsplash.com The public benefit entities include organisations focusing on areas of religion, charity, science, education and culture The UAE’s finance ministry has exempted public benefit entities from paying corporate tax. The corporate tax law will be effective for financial years starting on or after June 1, 2023. Public benefit entities often include organisations focusing on areas of religion, charity, science, education and culture. They will, however, continue to comply with all local, state, and federal laws and notify the finance ministry of any changes that may affect their status as qualifying public benefit entities to be eligible for the tax exemption. These entities must meet the requirements under Article (9) of the Corporate Tax Law. On the finance minister’s recommendation, the cabinet may change, add, or remove entities from the list of qualifying public benefit entities, state-owned WAM news agency reported. The qualifying public benefit entities will be subject to several reporting requirements, mainly to ensure they meet the criteria for exemption. The corporate tax, announced in January this year, will levy a standard rate of nine percent on taxable profits of more than AED375,000 ($102,000). Profits up to that threshold will not be taxed in an effort to support the country’s small businesses and startups. The tax is being introduced as the UAE seeks to align itself with international standards, particularly the global minimum tax on multinational corporations endorsed by the G20 major economies.