On April 7, 2025, the UAE government implemented some new tax laws. These laws contain important information for those doing business there and those investing abroad. Now, the UAE system is on par with that of good countries in the world.
What are QIFs and REITs?
- QIFs (Qualifying Investment Funds): Funds are where many people pool their money and invest in large projects.
- REITs (Real Estate Investment Trusts): Funds that invest in buildings, flats, or offices and earn money from rent.
What does the new law say?
If a QIF invests less than 10% of its total money in properties and the fund is owned by multiple people (i.e. not fully controlled by one person), then the fund will not be taxed. If the investment in properties exceeds 10%, then 80% of the income will be taxable.
Ease for foreign investors
If the fund distributes most of its earnings to people within 9 months, then investors will only have to register when they receive profits. That is, the law has been made straightforward.
New law: 15% minimum tax (DMTT)
The world’s largest companies will now have to pay a minimum tax of 15% everywhere. So that companies do not save by moving to low-tax countries.
In the UAE:
Companies with global revenues exceeding 750 million euros will also be taxed at 15%. This law will start on January 1, 2025.
Research and new job rewards
- R&D tax credit:
Companies that spend on research will get a 30% to 50% tax refund. This law will start in 2026.
- High-level jobs tax credit:
Companies that hire for high-level positions (such as CEO, CFO) will get a tax break. This will start in 2025.
Good news for partnership companies
Some partnership companies will now be considered “transparent.” This means that the company itself will not pay taxes; each partner will pay their share of taxes separately.
More convenience for foreign investors
If the fund is managed properly, there will be no direct tax on foreign investors. The only condition is that the fund does not invest more than 10% in real estate and enough people join the fund.
conclusion
The UAE has now become a country where business is easy, investment is safe, and the tax system is the best in the world. If you have a business in the UAE or you want to invest there, then these new laws can be very beneficial for you.
