Exempt Income: Dividends and Participation Exemption
This guide (CTGEXI1 of 2023) provides guidance to Taxable Persons with regards to the exemptions in the Corporate Tax Law for Dividends and other profit distributions, such as the Participation Exemption, particularly on the following aspects:
- How Dividends and other profit distributions are defined;
- Which income (and related expenditure) from a Participation is exempt;
- Who is eligible for the exemption;
- How the Participation Exemption operates; and
- What are the related implications in terms of Tax Groups.
This guide does not cover Unincorporated Partnerships.
View the Document: Corporate Tax Guide | CTGEXI1
Important Notice
The above extract has been provided for reference only and is based on information available in the public domain at the time of publication, which is subject to change. This does not constitute any form of advice or recommendation and therefore cannot be relied on to cover specific situations. We highly recommend that you consult with a qualified tax advisor in the UAE for personalized guidance based on your specific business circumstances. We accept no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Please refer to the following resources for the official and up-to-date information on the UAE Corporate Tax legal framework:- UAE Ministry of Finance: https://mof.gov.ae/tax-legislation/; and
- UAE Federal Tax Authority: https://tax.gov.ae/en/Legislation.aspx