UAE Corporate Tax Exemption Now Runs on a 90-Business-Day Clock

Created On: November 5, 2026
Newsletter, U.A.E.

Modified On: November 5, 2026

Summary:

FTA Decision No. 15 of 2026 introduces revised procedures and deadlines for UAE Corporate Tax exemption applications, effective from 15 September 2026. Eligible entities must register with the FTA before applying for exemption and follow the prescribed filing timelines.

The standard application window has increased from 60 to 90 Business Days after the end of the relevant Tax Period. With the 31 December 2026 deadlines approaching for two categories, eligible entities should review their exemption status, registration and filing requirements.

Key Takeaways

90 Business Days: Eligible entities must submit exemption applications within 90 Business Days after the end of the relevant Tax Period.
Registration first: FTA registration approval is required before submitting an exemption application.
31 October 2026 deadline: This deadline has passed for certain government-owned and controlled entities. Their filing position should be reviewed.
31 December 2026 deadline: Two categories of entities have this upcoming deadline for retrospective exemption applications.
Subsidiary applications: Certain subsidiaries can apply only after their parent or controlling entity has submitted its exemption application.
Effective date: Approved exemptions generally take effect from the beginning of the Tax Period specified in the application.
Previous decision replaced: FTA Decision No. 15 of 2026 repeals FTA Decision No. 7 of 2023 and extends the standard application window from 60 to 90 Business Days.

The Federal Tax Authority (FTA) has introduced new procedures and timelines for Corporate Tax exemption applications under FTA Decision No. 15 of 2026, issued on 8 September 2026 and effective from 15 September 2026. Eligible entities must now submit their applications within 90 Business Days after the end of the Tax Period in which they meet the exemption conditions.

The decision also sets fixed deadlines for certain categories of entities, including some seeking retrospective exemption.

Missing an applicable deadline can affect an entity’s exemption status. Businesses should review their eligibility, registration status and filing obligations without delay.

Who is affected by the UAE corporate tax exemption rules?

Article 4(1) of the Corporate Tax Law lists the categories of exempt persons. The decision applies to those in paragraphs (e) to (i): qualifying public benefit entities (e), qualifying investment funds (f), public or private pension and social security funds (g), UAE juridical persons wholly owned and controlled by certain exempt persons (h), and other persons exempted by a Cabinet decision (i).

The obligations differ by category. Entities under paragraph (e) must register for Corporate Tax, but the decision does not set out a separate exemption application step for them. Entities under paragraphs (f), (g), (h) and (i) must register and, once the FTA approves the registration, submit an exemption application.

Certain subsidiary structures also have specific filing requirements. The parent or controlling entity may need to submit its exemption application before the subsidiary can proceed.

Corporate Tax exemption application requirements by entity category:

Article 4(1) category	Entity type	Registration requirement	Exemption application
(e)	Qualifying public benefit entities	Required	No separate application step specified under this decision
(f)	Qualifying investment funds	Required	Required after registration approval
(g)	Public or private pension and social security funds	Required	Required after registration approval
(h)	Wholly owned and controlled juridical persons	Required	Required after registration approval
(i)	Other persons exempted by Cabinet decision	Required	Required after registration approval

Step 1. Register first

Registration is necessary before any application for exemption is submitted. Entities in paragraphs (e) to (i) must register within the timelines in FTA Decision No. 3 of 2024 and its amendments. A company incorporated on or after 1 March 2024 gets three months to complete the registration, calculated from the date of its incorporation. However, if a company is incorporated abroad but is effectively managed and controlled in the UAE, it has three months for registration, calculated from the end of its financial year.

Companies formed before 1 March 2024 had registration deadlines based on the month in which their licence was issued. These deadlines fell during 2024 and have now passed, so entities that have not yet registered should do so without delay and review any late registration penalty exposure. The exemption application can only be submitted once the FTA approves the registration.

Step 2. Know your deadline

The following fixed deadlines apply in addition to the general 90-Business-Day rule. Status is shown as of 4 November 2026.

Entity category	Application deadline	Status as of 4 November
UAE juridical persons under Article 4(1)(h), wholly owned and controlled by Government Entities or Government Controlled Entities, for Tax Periods ending before 1 January 2026 in which the exemption conditions were met	31 October 2026	Passed
Persons under Article 4(1)(i) covered by Cabinet Decision No. 55 of 2025 and eligible for retrospective exemption	31 December 2026	Upcoming
Juridical persons eligible under Article 5 of Cabinet Decision No. 34 of 2025, for Tax Periods commencing in 2025 and ending on or before 31 August 2026	31 December 2026	Upcoming

Important: The 31 October 2026 deadline has already passed. Entities covered by this provision should review their filing position and seek appropriate professional advice.

For persons under Article 4(1)(i) that become eligible for retrospective exemption under a Cabinet decision issued on or after 1 January 2026, the application is due within 90 Business Days from the end of the Tax Period in which that Cabinet decision is issued.

In all other cases, eligible persons under Article 4(1)(f) to (i) must submit their exemption application after the end of the Tax Period in which they meet the exemption conditions, and no later than 90 Business Days after the end of that period.

Business Days exclude weekends and official Federal Government holidays, so the deadline falls well beyond 90 calendar days after the Tax Period ends. Finance teams should calculate the exact date rather than count calendar days.

Two of the fixed dates fall on 31 December 2026, which makes year-end a busy filing period.

Subsidiaries also need attention. Under Article 3(4), a juridical person under paragraph (h) or (i) that is wholly owned and controlled by a person under paragraph (f), (g) or (h) may apply only once its owner has applied for exemption. The FTA will consider the subsidiary’s application only after approving the owner’s exemption.

When does the exemption start?

An approved exemption generally takes effect from the beginning of the Tax Period specified in the application, so choosing the correct Tax Period is important.

However, the FTA may determine a different effective date in certain circumstances, including where the Tax Period stated in the application is incorrect, where the entity is acquired by certain exempt persons during a Tax Period, or where the exemption is granted by legislation with retrospective effect.

A professional review of the Tax Period before filing can help identify timing issues early.

What it replaces

FTA Decision No. 15 of 2026 repeals FTA Decision No. 7 of 2023 from 15 September 2026. It applies to Tax Periods commencing on or after 1 June 2023, for applications submitted on or after 15 September 2026. The standard application window has increased from 60 to 90 Business Days, giving eligible entities additional time to prepare their submissions.

The Corporate Tax Law continues to determine exemption eligibility, while Decision No. 15 of 2026 sets out the application procedures and timelines. Entities should review the decision alongside the relevant Cabinet and Ministerial decisions.

Particulars	Previous rule	New rule
Applicable decision	FTA Decision No. 7 of 2023	FTA Decision No. 15 of 2026
Standard application window	60 Business Days	90 Business Days
Effective date	Previous decision applicable	15 September 2026
Application coverage	Previous procedures	Applies to Tax Periods commencing on or after 1 June 2023, for applications submitted on or after 15 September 2026

Action plan

IMC suggests four practical steps:

Determine which category under Article 4(1) the entity falls under, and whether a parent entity must apply first.
Register within the timeline in FTA Decision No. 3 of 2024 (as amended) and obtain FTA approval of the registration before applying for exemption.
Calculate the 90-Business-Day deadline, or any fixed date that applies, and mark it in the compliance calendar.
Have the Tax Period and supporting documents reviewed by a tax professional before filing.

31 December 2026 is approaching. Does your entity qualify for Corporate Tax exemption under the new FTA decision?

Contact IMC to review your exemption eligibility, registration status and applicable filing deadlines. Our team can assist with the Corporate Tax registration and exemption application process, including the documentation required for submission.

Contact IMC today

References:

Federal Tax Authority, FTA Decision No. 15 of 2026 on Provisions on Exemption from Corporate Tax (tax.gov.ae, Legislation, Corporate Tax)
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Article 4
FTA Decision No. 3 of 2024 on the Timeline Specified for Registration of Taxable Persons for Corporate Tax, and its amendments
Cabinet Decision No. 34 of 2025 and Cabinet Decision No. 55 of 2025

Disclaimer: This newsletter is for general information only and does not constitute tax or legal advice. The English text of FTA Decision No. 15 of 2026 published by the FTA is an unofficial translation. Entities should verify the official text and seek professional advice on their specific circumstances before acting.

Author Bio:

Krizelle Zara Briones delivers precise, hands-on expertise across business accounting, tax, and audit compliance. She simplifies complex regulatory requirements, allowing clients to move forward with clarity and strategic confidence.

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UAE Corporate Tax Exemption Now Runs on a 90-Business-Day Clock

Summary:

Key Takeaways

Who is affected by the UAE corporate tax exemption rules?

Step 1. Register first

Step 2. Know your deadline

When does the exemption start?

What it replaces

Action plan

31 December 2026 is approaching. Does your entity qualify for Corporate Tax exemption under the new FTA decision?

References:

Author Bio:

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