The new tax measures of the VAE: a golden age for investment funds and limited partnerships?
The VAE has once again set the bar higher for investor -friendly areas of law. With the introduction of targeted reforms of the corporation tax, the country makes a clear explanation: it is planning to remain a top constitation for worldwide capital. The core of these changes are two important structures –Qualifying investment funds (QIFS) And Limited Partnerships (LPS)– Both of both are now recent special treatment among the updated regulations.
You are measures only policy upgrades – the part of a broader strategy to stimulate economic diversification, to immediately stimulate foreign and position the VAE as a prominent HUB for asset managers, risk capital and private equity companies.
Let’s investigate what is changing and why it matters.
The rise of the qualifying investment fund (QIF)
Under the new tax framework, investment funds that meet specific criteria can request Exemption from the VAE company tax. To be eligible, a fund must be properly regulated, managed by professionals and in a structured way to display the ownership diversity – which means that it cannot be controlled tightly by a single person or group.
The Government of the VAE has also introduced assets -based criteria, so that funds are mainly furious for real estate activity, not exploiting these exemptions unless in structured as Reit’s (real estate investment trusts). If the property ownership of a fund exceeds a certain threshold, part of the income can become taxable – so that the system brings more transparency and fairness.
It is important that the new rules also offer flexibility. If a Temporail Fund does not meet ownership of ownership, it may still be exempt status because the infringement is limited in time and scope. This approach reflects a pragmatic concept of how investment structures work in the real world.
Limited partnerships: now tax transparent
In parallel, the UAE is to continue with international best practices Tax transspare status To choose limited partnerships. This means that the partnership itself does not pay corporation tax; Inserder, the tax obligation flows to the individual partners based on Eshare of income and their own tax permit.
This is an important shift. Tax transparency has long been the global gold standard for structures used in private equity, real estate development and cross -border investment vehicles. By embracing this model, De VAE not only finds the formation of new partnerships with its limits, but also makes it easier for global investors to operate via VAE -based structures without activating unnecessary tax pressure.
A strategic step with global impact
These reforms reflect a wider vision. The VAE actively creates a tax environment that supports investments, entrepreneurship and innovation – without endangering the integrity of the regulations. By providing clarity about tax treatment, simplifying compliance and building investors confidentially, the country distinguishes itself from many traditional financial centers.
For fund managers, family officers and institutional investors this means opportunity. For well-structured QIF or LP can serve as an efficient, in accordance with and tax-optimized vehicle for regional or international investments. And with supervisors increasingly with the private sector, the path to approval has never been so merged.
What is the following?
Although the stimuli are attractive, these structures are not one-size-fitslall. Each option has its own elegility criteria, reporting obligations and strategic considerations. Professional guidance is essential to ensure that the attitude meets both legal requirements and the commercial goals of the company.
If the Moverd of the VAE with its long -term vision for economic resilience and worldwide competitiveness, the message is clear: this is a jurisdiction that those who invest smartly, strategically structure and play for the rules.
Need support by navigating the new landscape? Our team Bizzmosis group Offers legal and structural advice to help you use the latest VAE instructions to your benefit.
📩 Contact: hello@bizzmosis.com | ☎️ +971 52 979 8169
This article was prepared by Marco Marazzi, Business Solutions Legal Advisor or Bizzmosis Group
