UAE government hands tax and customs exemptions to art institutions under new law

The government rolled out a new federal law to regulate the arts sector and hand benefits to both institutions and professionals in the creative economy, Wam reports. The law exempts artistic institutions from the corporate tax, and encourages local authorities to offer separate incentives and exemptions to encourage artistic creation and attract talent in the sector.

Under the new rules, both individuals and companies — foreign or local — can set up temporary museums, exhibitions, and performances, as long as they secure the proper approvals.

The law paves the way for financial backing: Art institutions can now also accept grants, donations, and sponsorships under specific legal guidelines, with collections for exhibitions eligible for temporary customs exemptions.

On the operational side, licensing for artistic entities will be handled by local authorities or the Culture Ministry. The law specifies the types of artistic activities allowed in the UAE, including performances, academic lectures, and digital platforms. It also bans unlicensed artistic activity and forms of content that promote hatred, and racial and religious discrimination.