The Federal Tax Authority (FTA) has introduced clearer procedures and application deadlines for certain entities seeking exemption from UAE Corporate Tax. Learn about the 90-Business-Day application rule, eligibility requirements and important transitional deadlines.

Published: 10 November 2026 | Category: Tax & Compliance

Understanding FTA Decision No. 15 of 2026

The Federal Tax Authority (FTA) issued Decision No. 15 of 2026 on Provisions of Exemption from Corporate Tax, establishing procedures for certain categories of Exempt Persons to complete their registration and exemption applications.

Effective from 15 September 2026, the Decision replaces FTA Decision No. 7 of 2023 and applies to relevant applications submitted on or after its effective date for Tax Periods commencing on or after 1 June 2023.

One of its key clarifications is the distinction between Corporate Tax registration and exemption approval. Meeting the conditions for exemption does not automatically grant an entity exempt status. The relevant registration and application procedures must also be completed.

The Decision establishes a general application period of 90 Business Days and introduces specific transitional deadlines for certain categories of exempt persons.

Which Entities Are Covered by the Decision?

The Decision addresses specific categories of persons under Article 4(1) of the UAE Corporate Tax Law.

These include:

Qualifying Public Benefit Entities

Entities recognised as Qualifying Public Benefit Entities under the relevant Cabinet Decision, subject to the applicable requirements.

Qualifying Investment Funds

Investment funds that meet the conditions prescribed under the Corporate Tax Law and relevant Cabinet Decisions.

Public and Private Pension or Social Security Funds

Public pension and social security funds, as well as qualifying private pension and social security funds, may benefit from exemption provided they meet the relevant legislative and regulatory conditions.

Certain Wholly Owned and Controlled UAE Juridical Persons

Certain UAE juridical persons wholly owned and controlled by specified Exempt Persons may qualify for exemption, subject to the requirements under Article 4(1)(h) of the Corporate Tax Law.

Other Persons Designated as Exempt by Cabinet Decision

Certain other persons may be granted exemption through a Cabinet Decision issued under Article 4(1)(i) of the Corporate Tax Law.

The registration and exemption application requirements are not identical for every category. Persons falling within Article 4(1)(e) to (i) must complete Corporate Tax registration, while the exemption application procedure applies to persons in categories (f), (g), (h), and (i), subject to the relevant conditions.

Corporate Tax Registration Must Be Completed First

Eligible entities must complete Corporate Tax registration before proceeding with their exemption applications.

Once the FTA approves the registration application, persons falling within categories (f), (g), (h), and (i) may submit a separate application for Corporate Tax exemption, provided they satisfy the applicable exemption conditions.

This means that qualifying for an exemption does not automatically remove the obligation to register for Corporate Tax.

Entities should review their registration status and ensure that the necessary procedures have been completed before submitting an exemption application.

General Exemption Application Deadline: 90 Business Days

FTA Decision No. 15 of 2026 establishes a general deadline for submitting Corporate Tax exemption applications.

Eligible persons falling within Article 4(1)(f), (g), (h), and (i) must submit their applications after the end of the Tax Period in which they meet the exemption conditions, but no later than 90 Business Days after that Tax Period ends.

The deadline is linked to the entity’s relevant Tax Period and the date on which the exemption conditions are satisfied.

A Business Day refers to any day of the week, excluding weekends and official Federal Government holidays. Therefore, the 90-Business-Day period is not calculated as 90 consecutive calendar days.

Special Transitional Deadlines for Certain Exempt Persons

In addition to the general 90-Business-Day application period, FTA Decision No. 15 of 2026 establishes specific transitional deadlines for certain categories of entities. These provisions address applications relating to earlier Tax Periods and persons covered by particular Cabinet Decisions.

31 October 2026: Certain Government-Owned and Controlled Entities

A special transitional deadline applies to certain UAE juridical persons falling within Article 4(1)(h) of the Corporate Tax Law.

This provision concerns juridical persons wholly owned and controlled by Government Entities or Government Controlled Entities, as specified under Article 4(1)(a) and (b).

Eligible entities may apply for Corporate Tax exemption in relation to Tax Periods that ended before 1 January 2026, provided the relevant exemption conditions were satisfied.

The application had to be submitted no later than 31 October 2026.

As this deadline has already passed, entities covered by this provision should review whether they submitted their exemption applications within the prescribed period. This transitional deadline applies only to the qualifying entities described in the Decision and is not a general deadline for all Exempt Persons.

31 December 2026: Persons Covered by Cabinet Decision No. 55 of 2025

A separate transitional deadline applies to certain persons falling within Article 4(1)(i) of the Corporate Tax Law who are eligible to apply for exemption with retrospective effect under Cabinet Decision No. 55 of 2025.

The application must be submitted no later than 31 December 2026, subject to the conditions established under the applicable legislation.

Eligible entities should review their exemption status, supporting documentation and application requirements to ensure that their submissions are completed within this deadline.

31 December 2026: Certain Qualifying Investment Funds and Limited Partnerships

Another transitional provision applies to juridical persons entitled to apply for exemption under Article 5 of Cabinet Decision No. 34 of 2025.

This provision concerns relevant Tax Periods that commenced during calendar year 2025 and ended on or before 31 August 2026.

Eligible juridical persons must submit their exemption applications no later than 31 December 2026.

Entities should confirm that they meet the specific requirements under Cabinet Decision No. 34 of 2025 before relying on this transitional application period.

90 Business Days: Cabinet Decisions Issued on or After 1 January 2026

A separate application timeline applies to persons falling within Article 4(1)(i) who are eligible for retrospective exemption under a relevant Cabinet Decision issued on or after 1 January 2026.

In these circumstances, the exemption application must be submitted within 90 Business Days after the end of the Tax Period in which the relevant Cabinet Decision is issued.

This provision establishes a specific timeline for entities whose exemption eligibility arises from qualifying Cabinet Decisions issued from 2026 onwards.

When Does an Approved Corporate Tax Exemption Take Effect?

Submitting an exemption application does not automatically mean that the entity becomes exempt from Corporate Tax from the date of submission.

Under FTA Decision No. 15 of 2026, once the FTA approves an exemption application, the exemption generally takes effect from the beginning of the Tax Period specified in the application.

However, the FTA may determine an alternative effective date in certain circumstances, depending on the entity’s situation and the applicable legislative provisions.

Entities should ensure that the Tax Period stated in their applications is accurate and supported by the necessary information.

Exemption Applications for Wholly Owned Subsidiaries

FTA Decision No. 15 of 2026 also clarifies the application sequence for certain juridical persons that are wholly owned and controlled by another Exempt Person.

A qualifying subsidiary may submit its exemption application only after its controlling entity has submitted its own application.

However, the FTA will not make a decision on the subsidiary’s application until the controlling entity’s exemption application has been approved.

This requirement makes the order of applications particularly important for corporate groups with multiple entities seeking Corporate Tax exemption.

Companies with qualifying subsidiaries should coordinate their applications and ensure that the controlling entity completes the relevant process first.

What Should Eligible Entities Do?

Entities that may qualify for Corporate Tax exemption should review their registration status, eligibility and application timelines to ensure that the relevant procedures have been completed.

The following steps can help manage compliance:

• Confirm exemption eligibility: Identify the applicable category under Article 4(1) of the Corporate Tax Law and review the conditions that must be satisfied.
• Complete Corporate Tax registration: Ensure that the registration application has been submitted and approved within the applicable timeline.
• Identify the relevant Tax Period: Establish when the exemption conditions were met and determine the corresponding application deadline.
• Review transitional provisions: Check whether the entity qualifies for any of the specific deadlines under FTA Decision No. 15 of 2026.
• Prepare supporting information: Ensure that the information and documentation needed to demonstrate exemption eligibility are available.
• Coordinate applications within corporate groups: Where a subsidiary is wholly owned and controlled by another Exempt Person, ensure that the controlling entity has submitted its application first.

Conclusion

FTA Decision No. 15 of 2026 establishes clearer procedures and application timelines for certain entities seeking exemption from UAE Corporate Tax.

While the general exemption application period is 90 Business Days after the end of the relevant Tax Period, specific transitional deadlines apply to certain categories of exempt persons.

The 31 October 2026 deadline for qualifying government-owned or controlled juridical persons has passed. Meanwhile, the 31 December 2026 deadlines remain relevant to eligible persons covered by Cabinet Decision No. 55 of 2025 and certain juridical persons covered by Cabinet Decision No. 34 of 2025.

For qualifying investment funds, pension and social security funds, eligible subsidiaries and other designated exempt persons, understanding the applicable category and completing the required procedures are essential to managing Corporate Tax compliance.

This article is intended for general informational purposes only and does not constitute tax, legal or professional advice. The applicability of Corporate Tax exemption provisions depends on the specific circumstances of each entity and the relevant UAE legislation. Businesses and eligible persons should seek professional advice before making decisions or submitting applications to the Federal Tax Authority.

Official References

• Federal Tax Authority Decision No. 15 of 2026 – Provisions of Exemption from Corporate Tax.
• Federal Decree-Law No. 47 of 2022 – Taxation of Corporations and Businesses, as amended.
• FTA Decision No. 3 of 2024 – Timelines for Registration of Taxable Persons for Corporate Tax.
• Cabinet Decision No. 34 of 2025 – Qualifying Investment Funds and Qualifying Limited Partnerships.
• Cabinet Decision No. 55 of 2025 – Exempting Certain Persons from Corporate Tax.