UAE: Guidance on tax compliance obligations for qualifying investment funds and their investors
Guidance on obligations for QIFs and their investors in accordance with Cabinet Decision No. 34 of 2025, applicable for tax periods commencing on or after January 1, 2025
The Federal Tax Authority (FTA) issued Decision No. 8 of 2025, clarifying the timelines for meeting various tax compliance obligations for qualifying investment funds (QIFs) and their investors in accordance with Cabinet Decision No. 34 of 2025—applicable for tax periods commencing on or after January 1, 2025—under which QIFs will no longer be treated as tax-transparent entities and will be treated as exempt entities, provided certain conditions are met. In particular, QIF investors will be subject to corporate tax only if the QIF fails to meet the diversity of ownership condition or the QIF holds UAE immovable property exceeding 10% of their total assets or an interest in a real estate investment trust (REIT).
Decision No. 8 provides guidance regarding:
- Registration and return filing timelines for a juridical person QIF investor
- Information to be provided by QIF/REIT to investors
- Update to the timelines for annual declaration of QIF and REIT
- Deregistration of juridical person
- Taxable person status notification to the FTA
Read a December 2025 report prepared by the KPMG member firm in the UAE