Introduction

Investment funds, REITs, and family trusts are increasingly used for capital preservation and wealth management. UAE Corporate Tax Law provides a conditional exemption for these vehicles.

This blog outlines the tax rules for investment structures and how to qualify for exemptions.

Investment Funds Exemption

Investment funds are exempt if:

• Regulated by a competent UAE authority
• Not conducting commercial activities beyond asset management
• Have independent management and diverse investors
• Approved by the Federal Tax Authority (FTA)

Real Estate Investment Trusts (REITs)

REITs are exempt if:

• Assets are > AED 100M
• 20+ investors
• 80%+ of assets are income-producing real estate

Family Trusts

Tax treatment depends on:

• Whether the trust holds active business vs. passive investments
• Distribution policy to beneficiaries

Business-conducting trusts may be taxable unless exempted.

Registration and Filing

Even if exempt, funds/trusts must:

• Register for corporate tax
• File an annual declaration confirming exemption conditions

Final Thoughts

Tax exemptions for funds and trusts support the UAE’s ambition to be a global wealth hub — but they come with conditions. Stay proactive with compliance.

Need Advisory for Fund or Trust Tax Status?

At Think Biz, we:

• Assess exemption eligibility
• Manage registration and ongoing compliance
• Coordinate with regulators and the FTA

Schedule a private consultation today.

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae