TOOLS · CORPORATE TAX · HOLDINGS

Participation exemption checker (UAE CT)

Three tests decide whether a dividend or exit gain flows up untaxed: ownership, twelve months, and a real tax rate underneath. Answer them and see the position.

Dividend or capital gain (AED)Ownership%or acquisition cost (AED)Months held (actual or intended)

Dividend from a UAE-resident company (exempt without conditions)Participation taxed at ≥9% in its jurisdiction (or meets the equivalent test)

Position

Exempt

Tax if not exempt

—

The participation qualifies — the dividend or gain sits outside the Corporate Tax base. Remember the mirror: costs of acquiring or disposing of exempt participations are non-deductible, and the evidence (ownership %, dates, subject-to-tax proof) needs to be on file before the return.

Illustrative figures computed in your browser — nothing is uploaded, stored or sent anywhere. Not accounting or tax advice; verify treatment with your advisor.

Read the guide: Holding companies under UAE Corporate Tax: the participation exemption, explained →See Orbit run it for real