1 May 2025

UAE extends corporate-tax exemption to foreign entities owned by exempt persons

Cabinet Decision No. 55 of 2025 widens the corporate-tax exemption to foreign entities wholly owned by exempt persons — government entities, qualifying investment funds, and public pension or social security funds — where the relevant conditions are met. Previously the exemption reached only UAE-incorporated entities.

Implications for capital — Institutional owners can hold UAE-facing assets through non-UAE subsidiaries without forfeiting exempt status, affecting how sovereign, pension and fund capital structures its holdings.

Source: UAE Ministry of Finance