The Federal Tax Authority (FTA) has issued a new decision updating the rules around Corporate Tax exemptions in the UAE. Federal Tax Authority Decision No. 15 of 2026, issued on 8 September 2026, takes effect from 15 September 2026 and replaces the previous exemption framework set out in FTA Decision No. 7 of 2023.

Who does this effect?

The decision applies to entities falling under specific categories set out in Article 4 of the Corporate Tax Law — broadly, this covers qualifying public benefit entities, qualifying investment funds, government-controlled entities, and other persons the Cabinet may designate for exemption. If your business falls into one of these categories, this update changes how and when you need to apply.

What’s changed

1. A clearer registration-then-exemption sequence. Entities in the relevant categories must first register for Corporate Tax within the timelines set by FTA Decision No. 3 of 2024. Only once that registration is approved can an exemption application be submitted.
2. A standard 90-business-day window. As a general rule, exemption applications must be submitted within 90 business days of the end of the Tax Period in which the entity met the exemption conditions.
3. Specific deadlines for retrospective and transitional cases: Entities covered by Cabinet Decision No. 55 of 2025 applying for exemption with retrospective effect must do so by 31 December 2026. Juridical persons entitled to exemption under Cabinet Decision No. 34 of 2025, with tax periods that started in 2025 and ended on or before 31 August 2026, must also apply by 31 December 2026. Government-owned juridical persons (under paragraph (h) of Article 4) applying for exemption on tax periods that ended before 1 January 2026 have until 31 October 2026.
4. Effective date flexibility. Where an application is approved, the exemption normally takes effect from the start of the Tax Period specified in the application. However, the FTA retains discretion to set a different effective date in specific scenarios — for example, where the tax period stated was incorrect, where the applicant was acquired mid-period, or where supporting evidence points to a different qualifying period.

Why it matters

For businesses that already hold or are pursuing Corporate Tax-exempt status, missing one of these windows — particularly the 90-business-day rule or the 31 December 2026 deadline for retrospective cases — could mean losing the exemption for an entire tax period, with the resulting tax and compliance exposure that comes with it.

What to do now

If your business or group includes an entity that may qualify for exemption, this is the moment to confirm:

• Whether your registration is complete and within the FTA’s prescribed timeline
• Which exemption deadline applies to your specific category and tax period
• Whether any historical tax periods require a retrospective application before the 31 December 2026 cutoff

MKCA can help you assess your eligibility, prepare your exemption application, and make sure it’s filed within the correct window.