Ministerial Decision no. 68 of 2023

on Single Taxable Person for Government entities



Article 5 of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (‘the CT Law’) has specific provision for Government entities. As per clause 6 of Article 5 of the CT Law, a Government entity may elect to treat all the businesses or business activities undertaken by it as a Single Taxable Person (‘STP’).  


The Ministry of Finance of the United Arab Emirates has issued Decision No. 68 of 2023 on 07 April 2023 on treatment of all Businesses and Business activity conducted by a Government entity as a Single Taxable Person. Federal and Local Government entities are impacted by this Decision.



  • The Government entities need to appoint a Representative Government Entity (‘RGE’) and notify the Federal Tax Authority.
  • An application shall be made by the RGE to the Federal Tax Authority (‘the FTA’) which would include all the businesses and business activities conducted by Government entities under a license issued by a Licensing Authority.


  • The businesses and business activities shall be conducted under a license issued by a Licensing Authority.
  • The businesses and business activities should be conducted within the same Emirate (in case of Local Government).

Determination of taxable income

  • Consolidation of the financial results, assets and liabilities of all businesses and business activities attributable to the STP for the relevant Tax Period.

Addition of new businesses or business activities to STP

  • Directly treated as STP if the prescribed conditions as specified above are met.
  • Notification to the FTA within 20 business days from the date of occurrence of such event.

Discontinuance of businesses or business activities by STP

Notification to the FTA within 20 business days if:

  • any business or business activity is no longer conducted by the Government Entity.
  • any business or business activity is no longer conducted under a licence issued by a Licensing Authority.

Replacement of RGE

  • Through an application made to the FTA without discontinuation of the treatment as a STP.

Cessation of STP

  • Application to be made by RGE to the FTA (which is subsequently approved by the FTA); or
  • Failure to meet any of the conditions as specified above.

Start and end date of the treatment as a STP

  • The start and end date will be from the beginning of the tax period specified in the application or from any other tax period as determined by the FTA. 

Our comments

  • The myriad entities under a STP need not have separate corporate tax registration and can file a single corporate tax return thus reducing the compliance burden and administrative formalities.
  • While there are pros of forming a STP such as reduction in compliance burden, relief from transfer pricing provisions, etc., one may need to take into consideration other aspects such as the benefit of basic exemption limit of AED 375,000 which shall be limited to one STP rather than being available to each of the entities under the STP.

Contact Us

Rakesh Nair
Director, Corporate Tax
Rohit Kejriwal
Rohit Kejriwal
Senior Manager, Corporate Tax