The UAE Ministry of Finance has issued Ministerial Decision No. (105) of 2023

The rules to ensure that businesses remain eligible for a Corporate Tax exemption:

• A business undergoing liquidation or termination provided that a notification has been submitted to the Federal Tax Authority ("FTA") within (20) twenty business days from the date of the beginning of the liquidation or termination procedure
• A result of an event or situation that goes beyond the Person's control and could not have been reasonably foreseen or prevented

The steps to apply for Corporate Tax exemption:

• The Person shall submit an application to the FT within (20) twenty business days from the date it fails to meet the conditions to be exempt
• The Person is also expected to rectify the failure to meet the conditions within (20) twenty business days from the submission of the application
• This period may be extended by an additional (20) twenty business days if the failure to rectify is beyond the Person's reasonable control.

The Ministerial Decision addresses cases where a business no longer meets exemption conditions primarily to gain a corporate tax advantage. In such cases, the business will cease to be considered exempt on the date it no longer fulfils the exemption conditions.