The proposed UAE Corporate Tax Law will treat the UAE investment funds and foreign investment funds, which are structured as unincorporated partnerships, as fiscally transparent. This is in line with the international tax treatment of such investment funds. It means that the investment funds will not be taxpayers in their own right, but their income will instead ‘flow through’ and be taxed in the hands of the partners or members only.
This flow-through treatment is an internationally accepted treatment for investment funds as it ensures tax neutrality for investors in collective investment funds that are often structured as limited partnerships. Availing of corporate tax consulting services in Dubai can help investment funds accurately determine their exempted status.
Provision for Regulated Investment Funds & Real Estate Investment Trusts
The proposed UAE Corporate Tax Law will have a provision for regulated investment funds and Real Estate Investment Trusts to get exemption from the UAE corporate tax. They will have to apply to the FTA to avail of tax exemption after meeting certain requirements. Corporate tax consultants in Dubai can update you on the requirements once the government releases the Corporate Tax Law.
