Corporate Tax: UAE Ministry of Finance sets tax rules for non-resident persons

Corporate Tax: UAE Ministry of Finance sets tax rules for non-resident persons

Non-resident juridical persons with UAE immovable property will be subject to Corporate Tax on a net-income basis. This allows for relevant expenditure that meets the conditions set out in the Corporate Tax Law to be deducted when calculating taxable income.

Real Estate Investment Income earned from UAE immovable property owned by foreign or UAE resident individuals, either directly or through a trust, foundation or other vehicle that is treated as fiscally transparent for UAE Corporate Tax purposes, would generally not be subject to Corporate Tax provided it is not a licensed business activity. Further, Real Estate Investment Trusts and other Qualifying Investment Funds may benefit from an exemption from Corporate Tax on income derived from the investment in UAE immovable property, provided that the relevant conditions are met.