The Decision outlines conditions for certain Real Estate Investment Trusts (REITs) to qualify for corporate tax exemption.
The UAE Ministry of Finance has issued Ministerial Decision No. 96 of 2025 on Conditions to Exempt Certain Real Estate Investment Trusts from Corporate Tax, outlining the conditions for certain Real Estate Investment Trusts (REITs) to qualify for corporate tax exemption.
According to the Ministerial Decision No. 96, Real Estate Investment Trusts REITs meeting the requirements of Article 10(1) of the Corporate Tax Law and Article 4(1) of Cabinet Decision No. 34 of 2025 can apply for a Corporate Tax exemption as a Qualifying Investment Fund.
One key condition under Cabinet Decision No. 34 of 2025 is that at least 20%, or any other percentage as specified by the minister of its shares are floated on a recognised stock exchange, and the real estate investment trust and its related parties or connected persons do not subscribe to or purchase any of the floated shares.
According to Ministerial Decision No. 96 of 2025, the minimum percentage of shares that must be floated on a recognised stock exchange for a real estate investment trust whose shares are listed for the first time on a recognised stock exchange during the period from 1 May 2025, to 31 May 2025, shall be 10%.
This Decision takes effect for tax periods beginning on or after 1 January 2025. This Decision shall be published and come into effect on the date of its issuance.
Earlier, the UAE’s Federal Tax Authority (FTA) issued a new public clarification regarding Corporate Tax on the tax treatment of investors in a Real Estate Investment Trust (REIT) who are exempt from Corporate Tax as a Qualified Fund on 6 May 2025.
