A decision specifying cases of “non -resident” investor for corporate tax purposes

The Ministry of Finance announced the issuance of Cabinet Resolution No. (35) of 2025 regarding determining the link of the non -resident person in the country for the purposes of decree by Law No. (47) of 2022 regarding the tax and business tax, which replaced the provisions of Cabinet Resolution No. (56) of 2023.

The decision facilitates the burden of compliance with foreign investors, as it reflects the commitment of the UAE government to provide an investment environment in support of these investors.

The new decision defines the cases in which the non -resident legal person, invested in a “qualified investment fund” or a “real estate investment fund”, is a link in the UAE, and thus is subject to tax.

This comes in light of the issuance of Cabinet Resolution No. (34) for the year 2025 regarding qualified investment funds and limited partnerships for the purposes of the decree of a federal law No. (47) of 2022 regarding the tax on companies and businesses.

According to the new decision, a link is established in the UAE for the non -resident legal person, invested in a “qualified investment fund”, in the event that the permitted real estate ownership rate exceeds, whether on the date of the distribution of profits if the fund is distributed (80%) or more of its income within nine months of the end of its financial year, or in the date of acquisition of the ownership shares if the fund is not distributed at least (80%) of its income within nine months of The end of his financial year.

A link to the non -resident legal person also arises, in the event that the qualified investment fund is not fulfilled by the conditions of the diversity of ownership, during the tax period in which these conditions were not met.

As for the real estate investment funds, a link is established for the non -resident legal person, invested in the fund either on the date of the distribution of profits if the fund distributes (80%) or more of its income within nine months of the end of its financial year, or on the date of acquisition of the ownership shares if the fund is not distributed (80%) or more of its income within nine months of the end of its financial year.

With the exception of the above cases, the non -resident legal person, who invests exclusively in a “qualified investment fund” and/or “a real estate investment fund”, will not return a taxable presence in the UAE.