Under Article 23 of the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022), dividends and capital gains a UAE company earns from a Qualifying Shareholding can be exempt from the 9% Corporate Tax.
To qualify, a shareholding generally needs at least 5% ownership (or AED 4,000,000 acquisition cost), a 12-month holding period, and the investee must itself be subject to tax at 9% or more in its home jurisdiction.
The full guide covers the ownership and holding-period tests, common disqualifying scenarios (real estate-heavy investees, low-tax jurisdictions), how it interacts with Free Zone Qualifying Income and the Article 47 Foreign Tax Credit, and how to document the exemption for an FTA audit.
Read the full breakdown: https://qasproglobal.com/uae-participation-exemption-2026/
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