The UAE corporate tax regime is set to become effective from June 1st 2023. However, many investors are still unaware of the proposed corporate tax’s impact on their businesses. Lack of adequate preparation may result in compliance failure, attracting hefty penalties from the Federal Tax Authority (FTA). The first thing you must know to ensure corporate tax compliance in the UAE is to determine whether your business falls within its scope.
The UAE Corporate Tax Public Consultation Document has listed certain types of entities or persons that are exempt from the scope of UAE corporate tax. Investment funds are one of the key exempted entities under the corporate tax. In this blog, we will discuss what are investment funds and what such businesses must do to claim exemption from the UAE corporate tax. spancom can advise you further on the exemptions.
UAE Corporate Tax Exemption for Investment Funds
The UAE offers comprehensive investment fund regimes catering to a wide range of fund managers and investor requirements. The introduction of the UAE corporate tax exemption for investment funds is aimed at increasing the confidence of international investors. It will also help to improve the UAE’s position as the preferred choice for investment funds, investment fund managers, and entities used by investment funds to hold their assets or invest their funds. Corporate tax advisers in Dubai can further advise you on the impact of corporate tax on investment funds
