I sold my shares in another company — is the gain subject to Corporate Tax?

By default, capital gains from selling shares or an equity stake fall within taxable income and are subject to the standard 9% rate (after the first AED 375,000 exemption). But Article 23 of the Corporate Tax Law provides a "participation exemption" that can take both capital gains and dividends entirely out of the tax base, provided the shareholding meets several conditions together: at least 5% ownership, held continuously for 12 months (or with a genuine intention to hold it that long), and the investee being effectively subject to tax at a rate of at least 9% in its own jurisdiction.

There's also an asset-composition test: if more than 50% of the investee's assets are interests that wouldn't themselves have qualified for exemption if held directly, the exemption falls away. Ownership percentages are aggregated with other members of a Qualifying Group where relevant. Whether the exemption applies can make a substantial difference to the real value of a deal, so RASEEKH assesses the participation conditions before any sale or acquisition so you know your tax position early.