Subject to approval by the Federal Tax Authority (“FTA”), Family foundations, trust or a similar entity (“Foundation”) meeting certain conditions (Article 17 of UAE CT law) can be treated as fiscally transparent unicorporated partnership. In such case, Foundation will not be subject to UAE Corporate Tax (UAE CT) in its own rights and beneficiaries will be treated as partners of the unincorporated partnership.

For Corporate Tax purposes, the assets, liabilities, income and expenditure of the Foundation will be allocated to each beneficiary in proportion to their distributive share (i.e. the beneficial interest) for each relevant Tax Period and will be subject to UAE CT in the hands of beneficiaries. However, Natural persons are not subject to UAE CT in respect of their income from Wages, personal investment and real estate.

Further, Foundation’s benefit of not being subject to UAE CT is also extended to the entities owned under the Foundation subject to certain conditions.

Accordingly, the foundation, its subsidiaries and beneficiaries (Natural persons) will not be subject to UAE CT in respect of the income generated from investments and real estate activities if they continue to fulfill conditions prescribed.

For more details read full article at below link;

https://www.linkedin.com/posts/rohitca_uae-corporate-tax-on-family-foundations-activity-7343562767582294019-GgHF?utm_source=social_share_send&utm_medium=member_desktop_web&rcm=ACoAAAbTW1ABamDh20zgDmtF13Cx36kYYdgzCUM

The Current Legal Position Under UAE Tax Law

A recurring question under the UAE’s modern tax framework is whether UAE offshore companies are eligible to obtain a UAE Tax Residency Certificate (TRC)?

Under the current legal and regulatory framework, the answer is clear:

UAE offshore entities are not excluded from TRC eligibility merely because they are “offshore”.

Read more at the link provided;

https://www.linkedin.com/pulse/uae-offshore-companies-tax-residency-certificates-trc-rohit-boraniya-e4ojf