The UAE Federal Tax Authority (FTA) issued the Corporate Tax Guide on Investment Funds and Investment Managers – CTGIFM1 on Monday, 6 May, 2024, in order to provide general guidance to help persons understand the UAE Corporate Tax treatment for investment funds, investors, and investments with the assistance of Investment Managers.
This guide explains some of the terms and conditions in the Corporate Tax Law, and sets out the following:
- an overview of the meaning of Qualifying Investment Fund and Investment Manager;
- conditions for a Qualifying Investment Fund to be exempt from Corporate Tax;
- conditions for a Real Estate Investment Trust (REIT) to be exempt from Corporate Tax;
- tax implications for an investor investing in a Qualifying Investment Fund;
- conditions for a foreign person to benefit from the Investment Manager Exemption as specified under Article 15 of the Corporate Tax Law; and
- relevant Corporate Tax compliance requirements for the above.
The relevant Articles of the Corporate Tax Law and the implementing decisions are indicated in each section of the guide.
It is recommended that the guide is read in its entirety to provide a complete understanding of the definitions and interactions of the different rules. In some instances, simple examples illustrate how key elements of the Corporate Tax Law apply to Qualifying Investment Funds and Investment Managers.
