What’s in store for investors and fund managers post issuance of the latest Cabinet Decisions 

The Decision NO.34 & 35

The FTA has recently issued Cabinet Decision No. 34 and Cabinet Decision No. 35 which have brought about benefits for Qualifying Investment funds (QIFs’) which make investments outside real estate and for investment managers which are set up as incorporated partnerships. 

On comprehensive reading of these two above mentioned decisions

The non resident juridical investors (if nexus is established in UAE):

• The CT Registration as well as CT Filing deadlines are met to avoid the risk of any potential penalties being imposed by the FTA
• Advisable for the non resident juridical investors to align their investments appropriately to avoid any potential risk of their other income from being covered within the ambit of Corporate Tax in UAE.

Further , with respect to Fund Managers, it is advisable to review their existing fund structures and also to put in place appropriate processes at their end to clearly delineate value of immovable property as well as the corresponding depreciation adjustments .

These decisions are giving clarity to fund managers as well as to Investors to ensure tax transparency as well as procedural compliance in UAE. 

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