April 17, 2023Dated: | Byadmin admin | The rate of economic growth in a country increases with the amount of investment made there. The taxation of investment funds under the UAE corporate tax offers specific tax benefits and a concessional tax system to make the UAE a top destination for different investment funds. Under the UAE Corporate Tax Law (Article 10), qualifying investment funds (QIFs) are treated differently from other types of companies. Qualifying investment funds are exempted from corporate tax on their income and gains arising from their qualifying investments. However, to qualify for this exemption, the qualifying investment funds must meet certain conditions. For example, it must be registered in the UAE and must be licensed by the relevant authority. Additionally, the qualifying investment funds must invest in certain assets such as shares, bonds, and other securities that are listed on a recognized stock exchange or traded on another regulated market as well as the major motive should not be corporate tax avoidance. And any other conditions prescribed by the authority will be applicable. As part of compliance, the authority may inspect and ask to submit the relevant documents and details to enjoy the exempt status obtained by it under the UAE corporate tax law. In summary, qualifying investment funds are exempted from corporate tax on their income and gains arising from qualifying investments, provided they meet certain conditions. However, they may be subject to withholding tax on certain distributions made to non-UAE resident investors.