Dubai, UAE: The UAE Federal Tax Authority (FTA) has introduced updated procedures for Corporate Tax exemptions, with a new 31 October 2026 deadline that certain entities must act on now. The change comes under FTA Decision No. 15 of 2026, issued on 8 September and effective from 15 September 2026. The Decision replaces FTA Decision No. 7 of 2023 and sets new timelines for Corporate Tax exemption applications.
The 31 October deadline is particularly important for certain juridical persons seeking retrospective Corporate Tax exemption. It applies to a juridical person covered by Article 4(1)(h) of the Corporate Tax Law that is wholly owned and controlled by a person covered by Article 4(1)(a) or (b). The application can cover Tax Periods that ended before 1 January 2026, provided the exemption conditions were met for those periods.
New 90 Business Day Rule for Corporate Tax Exemption
For ongoing applications, the new framework also introduces a clear filing timeline. Persons covered by Article 4(1)(f), (g), (h), or (i) must apply for exemption after the end of the Tax Period in which they meet the exemption conditions. The application must be submitted within 90 Business Days after the end of that Tax Period.
The Decision also sets separate deadlines for certain retrospective exemption cases. For example, some persons covered by Cabinet Decision No. 55 of 2025 must apply by 31 December 2026. Certain other cases linked to Cabinet Decision No. 34 of 2025 also have a 31 December 2026 deadline.
Parent and Subsidiary Applications Need Careful Timing
The new rules also address group structures. Where a qualifying juridical person is wholly owned and controlled by another qualifying person, the subsidiary may apply for exemption only after the parent or controlling entity has applied. The FTA will not decide the subsidiary’s application until the parent’s exemption application has been approved.
This makes it important for groups with qualifying structures to review their applications and filing sequence without delay.
What Happens If the Deadline Is Missed?
The 31 October deadline is not a general deadline for every Corporate Tax-exempt entity. However, for entities covered by the specific retrospective provision, failing to apply within the required period may affect their ability to obtain exemption for the earlier Tax Periods covered by that provision.
Businesses should therefore confirm their exemption category, Tax Periods, ownership structure, and supporting records before submitting an application.
What Businesses Should Do Now
Businesses affected by the new rules should:
- Check whether they qualify for Corporate Tax exemption.
- Identify the Tax Periods covered by any retrospective claim.
- Review ownership and control requirements.
- Check Corporate Tax registration status.
- Prepare documents supporting their exemption conditions.
- Confirm the applicable filing deadline and submit the application through the required FTA process.
With the new rules now in effect, timely review is essential for businesses that may fall within the retrospective exemption framework. Dubai Business and Tax Advisors (DBTA) can support businesses with Corporate Tax advisory and tax compliance requirements, helping them review their position, understand the applicable requirements, and prepare for the relevant filing deadlines.
