Ministerial Decision No. 115 of 2023
This Decision outlines the requirements for private pension funds and private social security funds to be exempt from Corporate Tax in the United Arab Emirates (UAE).
This Decision affects private pension funds, private social security funds, and employers who contribute to private pension funds on behalf of their employees.
- The fund must be established and operated solely for the purpose of providing Pension Plan benefits or End of Service Benefits, as applicable.
- The fund must have a pool of assets that are specifically designated for the purpose of fulfilling the fund’s obligations.
- The fund’s income must be derived from investments, deposits, underwriting commissions, rebates, or other income that is consistent with a defined investment policy.
- The fund must have an independent Auditor who is responsible for confirming the fund’s compliance with this Decision.
Employers can deduct the total value of contributions made to a private pension fund on behalf of their employees who are Pension Plan Members, up to a maximum of 15% of the employee’s remuneration that is deductible for Corporate Tax purposes.
The Auditor of a private pension fund or private social security fund must annually confirm the fund’s compliance with this Decision. The Auditor must also report to the Authority any facts that they have become aware of while carrying out the audit that could constitute a breach of the conditions specified in this Decision.
This Decision came into effect on 11 May 2023.
For more information, please refer to the full text of Ministerial Decision No. 115 of 2023. You can also contact the Ministry of Finance or the Federal Tax Authority.
