30 August 2026 · How To
How to Claim the Exemption
The participation exemption is applied by reporting the dividend, gain or liquidation proceeds as exempt income on your corporate-tax return, supported by evidence that the participation met the ownership, 12-month and 9% conditions. Because exempt gains come with non-deductible losses, you should confirm the position is genuinely beneficial before claiming, and keep documentation for any FTA review.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
On the corporate-tax return
Exempt income is declared, not ignored.
- Report exempt dividends and gains on the return.
- Distinguish exempt from taxable income.
- Keep the ownership and tax evidence.
- Reconcile to your financial statements.
Confirm it helps
Exemption is not always an advantage.
- Exempt gains mean non-deductible losses.
- Model before you rely on the exemption.
- Document the qualifying analysis.
- Be ready for an FTA review.
Related guides
Frequently Asked Questions
For reporting exempt income correctly.
How do I claim the exemption?
Report the dividend or gain as exempt income on your corporate-tax return, supported by evidence the conditions were met.
Do I still declare exempt dividends?
Yes. Exempt income is reported on the return; it is distinguished from taxable income, not omitted.
What if the participation makes a loss?
A loss on a participation whose gains would be exempt is generally not deductible, model the position first.
Can Exiloz prepare the claim?
Yes. We evidence the conditions and report exempt income correctly.
Claim it correctly
Exiloz reports your exempt dividends and gains with the evidence to back them.