UAE Corporate Tax Participation Exemption Checker

What this checker does

Under Article 23 of the Corporate Tax Law, dividends, capital gains and liquidation proceeds from a qualifying shareholding (a 'Participating Interest') are fully exempt from Corporate Tax — preventing the same profit from being taxed twice, once in the subsidiary and again when distributed to the parent. To qualify, you need at least 5% ownership (or, from 1 January 2025, an acquisition cost of at least AED 4,000,000, which also waives the asset test below), a 12-month holding period, the participation being subject to tax at 9% or more in its own jurisdiction, and no more than 50% of the participation's assets being interests that wouldn't themselves qualify if held directly. This tool checks your shareholding against these conditions.

Disclaimer

This calculator provides an indicative result for guidance purposes only and is not a confirmed or legally binding determination. It does not review related-party-specific nuances of the asset test, or the detailed mechanics of the subject-to-tax test. PrimeLedger Consultancy FZCO does not accept responsibility for the accuracy of the result produced by this tool. Please cross-check your result with a qualified expert, such as PrimeLedger, and refer to official Federal Tax Authority guidance before making any tax position decisions.

Enter your details

Ownership Percentage (%)

Acquisition Cost of Your Interest (AED)

Have you held (or do you genuinely intend to hold) this interest for at least 12 uninterrupted months?

Is the participation subject to Corporate Tax, or a foreign tax, at a statutory rate of at least 9%?

Do more than 50% of the participation's assets consist of interests that wouldn't themselves qualify for this exemption if held directly?

Your Participation Exemption Position

Enter your details to check your participation exemption position.

Last Updated: 14 August 2026