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What foreign investors need to know about UAE’s updated tax rules

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The UAE has introduced new rules to clarify when foreign companies or investors may be subject to corporate tax on their investments in the country.

Under Cabinet Decision No. 35 of 2025, the UAE Ministry of Finance has outlined specific conditions under which non-resident investors in Qualifying Investment Funds (QIFs) or Real Estate Investment Trusts (REITs) will be seen as having a taxable presence (nexus) in the UAE.

What Does This Mean for You?

If you’re a non-resident juridical person (i.e. a foreign company or legal entity) investing in a QIF or REIT in the UAE, you’ll only be considered taxable in the UAE if:

  • The fund does not distribute at least 80% of its income within nine months after the end of its financial year. In this case, your tax obligation starts from the date you acquired the investment.
  • The fund does distribute 80% or more, but your taxable status starts from the date the dividend is paid.
  • The QIF fails to meet the diversity of ownership rules during the tax period.

Good News for Passive Investors

If your investment is in QIFs or REITs that comply with the rules and none of the exceptions apply, you won’t be considered to have a taxable presence in the UAE. This means no corporate tax liability under the UAE’s tax system.

Why This Matters

This decision gives much-needed clarity to international investors. It helps ensure that foreign investment in UAE-based funds remains attractive and tax-efficient while aligning with the country’s new corporate tax framework.

In short, if you’re investing in compliant UAE funds or REITs as a non-resident, you’re unlikely to face UAE corporate tax unless certain distribution or ownership conditions aren’t met.

(Source: Wam)

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

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Dubai warns engineering firms over costly villa designs

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Dubai Municipality has issued warnings to several engineering consultancy offices after finding that they exaggerated structural designs for citizens’ villas.

According to officials, these inflated designs went against the Dubai Building Code and led to unnecessary construction costs for property owners, without any real engineering need.

The move is part of the Municipality’s efforts to regulate Dubai’s construction sector and protect residents from extra financial burdens. Consultancy offices across the emirate had already been reminded through circulars to strictly follow approved engineering standards.

Eng. Maryam Al Muhairi, CEO of the Buildings Regulation and Permits Agency, said:

“Compliance with the Dubai Building Code is not only a legal requirement but also a professional and ethical responsibility. The goal is to ensure safe, high-quality construction without forcing citizens to pay more than necessary.”

She added that Dubai Municipality will continue to monitor consultancy offices and contractors to prevent excessive use of building materials, including steel, and ensure construction remains efficient, safe, and cost-effective.

Repeat offenders could face disciplinary measures, including poor annual evaluations or even suspension. Earlier this year, two consultancy offices were banned from licensing new projects for six months due to violations.

By cracking down on such practices, Dubai Municipality says it aims to strengthen the emirate’s construction sector, cut waste, and support sustainable urban growth.

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UAE jobs: Thousands of opportunities and internships on offer as Careers Festival returns to Ras Al Khamiah

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Jobseekers across the UAE will have the chance to connect with top employers and explore real career opportunities when the Ras Al Khaimah Jobs and Internships Festival (RAKJIF) returns on October 9. The one-day event at the RAK Exhibition Centre will feature on-the-spot interviews, internships, CV clinics, and personalised career guidance, making it one of the country’s fastest-growing career platforms for young talent and professionals alike.

Ras Al Khaimah is set to host its third edition of the Jobs & Internships Festival (RAKJIF) on Thursday, October 9, at the RAK Exhibition Centre, bringing together leading UAE employers and ambitious jobseekers.

Organised by the Sheikh Saud bin Saqr Al Qasimi Foundation for Policy Research, in partnership with the Investment and Development Office Ras Al Khaimah (IDO) and the Department of Human Resources, the festival has quickly grown into one of the UAE’s most trusted platforms for career development.

This year’s edition will feature employers across key industries, including banking, oil and gas, consulting, engineering, hospitality, and real estate, with opportunities for on-the-spot interviews, CV clinics, and personalised career guidance. More than 1,000 Emirati job seekers are expected to attend.

New for 2025 is the AI & Future of Work Forum, where international experts, business leaders, and policymakers will share insights on how artificial intelligence is reshaping recruitment, workplace culture, and the skills needed for the jobs of tomorrow.

The one-day event, running from 9am to 5pm, aims to serve as a hub for professional growth, networking, and talent development.

For more information or to register, employers and job seekers can visit www.alqasimifoundation.com/rakjif

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UAE urges businesses to file Corporate Tax returns on time to avoid fines

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The Federal Tax Authority (FTA) has reminded companies in the UAE to finalise their financial records, submit their Corporate Tax returns, and pay any tax due within the official deadlines to remain compliant with the law.

In a statement today, the FTA stressed that all Corporate Tax taxpayers, including exempt persons required to register, must file their returns (or annual declarations) and settle outstanding tax within nine months from the end of each tax period.

The Authority underlined that timely filing and payment are legal obligations, with non-compliance exposing businesses to fines and penalties for delays or non-submission.

To ensure smooth and accurate filing, the FTA advised companies to begin preparations early by compiling essential documents such as commercial licences, financial statements, and business activity details. Early readiness, it said, allows registrants to meet obligations “efficiently and on time.”

Highlighting its role in supporting businesses, the FTA stated that it remains committed to enhancing services in line with global best practices. Digital filing and payment can be completed via the EmaraTax platform, available 24/7, which offers “clarity, ease, and speed.”

The Authority also urged taxpayers to ensure that submissions are complete and accurate. Corporate Tax returns can be filed directly through EmaraTax or with the assistance of authorised tax agents listed on the FTA’s website.

Stakeholders seeking detailed guidance on Corporate Tax law, implementing decisions, and related regulations can access resources directly at tax.gov.ae.

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