Non-Taxable and Exempt Revenue
Exempt Income
Certain income is exempt from Corporate Tax:
- Qualifying Free Zone income — 0% rate if conditions met
- Dividends — from UAE resident entities (participation exemption)
- Capital gains — from disposal of qualifying ownership interests
- Income from foreign permanent establishments — if elected
Participation Exemption
Dividends and capital gains from qualifying shareholdings (≥5% ownership held for ≥12 months) are exempt.
Documentation
Exempt income must be separately identified in the tax return and supported by documentation.