including the existence of an emergency or exceptional circumstance beyond his control
«Finance» clarifies the conditions for the continued consideration of the person exempt from «corporate tax»
Younis Haji Al-Khouri: "The decision ensures a fair and efficient tax system that promotes business growth in the country."
The Ministry of Finance announced the issuance of a decision specifying the conditions that allow a person to continue to be considered exempt from corporate tax, which contributes to clarifying the mechanism of applying the law and promoting business growth in the country in various sectors.
The resolution clarifies the conditions that must be met for the "business" to remain eligible for exemption from corporate tax, in the event that the relevant exemption conditions are not met in the decree, in specific cases such as companies under liquidation or closure, provided that it submits a notification to the Federal Tax Authority within 20 working days from the date of commencement of liquidation or closure procedures.
On the importance of the decision, the Undersecretary of the Ministry of Finance, Younis Haji Al-Khouri, stressed that "the decision ensures the existence of a fair and effective tax system that promotes business growth in the country."
"The new ministerial decision clarifies the conditions under which a person can be considered - or ceased to be considered - exempt from a different date, and other cases that allow him to continue to be considered an exempt person, such as the existence of an emergency or exceptional circumstance beyond the control of the exempt person, which he could not reasonably foresee or avoid."
In these cases, the exempted person must submit an application to the Federal Tax Authority within 20 working days from the date of not meeting the conditions of the exemption, and he must remedy and correct the matter within 20 working days from the date of submitting the application. The period for correcting non-fulfillment can be extended for an additional 20 working days if the reason is beyond the person's control.
The ministerial decision also clarifies that if it is concluded that one of the main purposes of the cessation of the exemption is to deliberately obtain a corporate tax advantage, which is considered an abuse of the tax system, the person will cease to be considered exempt from the day on which he no longer meets the conditions for the exemption.