Gulf News. 6 April 2025: The UAE Ministry of Finance has issued Cabinet Decision No. 35/2025 for non-resident investors in Qualifying Investment Funds and Real Estate Investment Trusts.

Cabinet Decision No. 35/2025, outlines the conditions under which non-resident juridical investors in Qualifying Investment Funds (QIF) or Real Estate Investment Trusts (REIT) are deemed to have a nexus in the UAE, and therefore are subject to taxation. It has repealed Cabinet Decision No. 56/2023 and follows Cabinet Decision No. 34/2025 concerning Qualifying Investment Funds and Limited Partnerships.

It impacts non-resident juridical investors in QIFs and REITs, specifying that a taxable nexus arises if a QIF or REIT distributes 80% or more of its income within nine months from its financial year-end, either on the date of dividend distribution or the date the ownership interest is acquired. A nexus would also be created if a QIF fails to meet the diversity of ownership conditions during the tax period. Conversely, non-resident investors who are exclusively investing in QIFs and REITs without breaching these conditions would not be considered to have a taxable presence in the UAE.

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