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How Businesses Can Prepare for the Rollout of eInvoicing Framework in the UAE in 2026?

eInvoicing Framework in the UAE in 2026?
How Businesses Can Prepare for the Rollout of eInvoicing Framework in the UAE in 2026?

The Essentials

On 29 September 2025, the UAE Ministry of Finance issued Ministerial Decisions 243 and 244, introducing a comprehensive e-invoicing framework for all commercial transactions, including those involving nonresidents. Exemptions apply to certain government activities, international airline services, goods transport (for 24 months), and VAT-exempt or zero-rated financial services. A pilot program begins on 1 July 2026, with mandatory adoption from 1 January 2027 for businesses with revenues of AED 50 million or more, followed by phased deadlines for smaller businesses and government entities. UAE businesses should take proactive steps to ensure compliance.

With the UAE’s e-invoicing rollout gaining momentum, businesses are shifting their focus from simply knowing “what” and “when” to mastering “how” and “why.” E-invoicing is evolving beyond a regulatory obligation to become a strategic tool driving operational efficiency, enabling smarter, data-driven decisions, and proactively mitigating compliance and financial risks.

On 29 September 2025, the UAE Ministry of Finance issued Ministerial Decisions 243 and 244, establishing the framework for eInvoicing framework in the UAE applicable to all commercial transactions, including those involving nonresidents. With the new decision, certain transactions are excluded, such as sovereign government activities, specific international airline services, goods transport (exempt for 24 months), VAT-exempt or zero-rated financial services, and other transactions designated by the Minister of Finance.

Operational Readiness for eInvoicing Framework in the UAE: Beyond ASP Appointment

While appointing an Accredited Service Provider (ASP) is a legal requirement, true readiness requires a holistic approach. Businesses must align systems, data, and processes to meet the phased rollout schedule:

  • Pilot and Voluntary Adoption: Begins 1 July 2026, allowing businesses to test systems and familiarize themselves with the e-invoicing framework.
  • Phase 1: Mandatory from 1 January 2027 for businesses with annual revenue of AED 50 million or more. ASP appointment must be completed by 31 July 2026.
  • Phase 2: Covers remaining businesses in two waves – mandatory adoption from 1 July 2027 and 1 October 2027. Turnover thresholds consider all revenue streams: B2B, B2G, and B2C.

Operational readiness involves:

  • ERP and Accounting System Upgrades: Ensure compatibility with XML/PINT AE standards for e-invoice generation.
  • Master Data Validation: Confirm accuracy of product, customer, and tax details.
  • Workflow Integration: Embed eInvoicing framework in the UAE in daily processes to prevent bottlenecks or delayed submissions.
  • Monitoring and Controls: Establish ongoing checks to identify errors or exceptions, mitigating penalties and compliance risks.

eInvoicing Framework in the UAE: Strategic Opportunities Beyond Compliance

  • Enhanced Governance and Audit Readiness
    Real-time reporting, structured data, and secure local storage increase transparency and simplify audits for the Federal Tax Authority (FTA).
  • Operational Efficiency
    Automation reduces manual processing, accelerates invoice cycles, and frees finance teams to focus on strategic initiatives.
  • Data Accuracy and Analytics
    E-invoicing creates structured, reliable data that can drive forecasting, cash flow analysis, and pricing strategies.
  • Competitive Differentiation
    Early adopters signal modern, tech-savvy operations, enhancing credibility with regulators, investors, and partners.

Risk Mitigation: Common Pitfalls to Address

Non-compliance to eInvoicing framework in the UAE  carries financial penalties and operational disruption. Strategic planning can mitigate these risks:

  • Late or Incorrect Invoice Issuance: Automated validation ensures invoices are submitted within 14 days of transaction or payment receipt.
  • System Integration Gaps: Conduct end-to-end testing to align ERP, accounting, and ASP systems before mandated dates.
  • Data Inconsistencies: Standardize master data and reconcile ERP and finance systems regularly.
  • Complex B2G/B2B Transactions: Map all transaction flows, including zero-rated and deemed supplies, to ensure coverage.

Turning Compliance into Competitive Advantage

eInvoicing framework in the UAE is a strategic opportunity for forward-looking businesses. Companies that act early and prepare thoroughly can:

  • Streamline operations and reduce manual errors
  • Gain greater accuracy and real-time visibility into transactions
  • Enhance regulatory compliance and governance
  • Leverage structured data for financial insights and business intelligence

How MS Can Help to Comply with eInvoicing Framework in the UAE?

MS supports businesses in transforming UAE e-invoicing compliance into a strategic advantage. We help identify potential risks, implement robust controls, and ensure smooth alignment with the phased rollout schedule. With our multidisciplinary expertise, companies can confidently navigate the UAE’s e-invoicing framework, avoid penalties, and unlock the full strategic potential of this digital transformation.

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DIFC Foundations and Trusts: Which Path Suits Your Wealth Goals in 2025? Find Here! 

Setup your DIFC Foundations and Trusts
DIFC Foundations and Trusts offer distinct approaches to wealth protection and management. Trusts emphasize privacy and simplicity, while Foundations provide greater control, flexible governance, and strategic long-term benefits.

The Essentials 

DIFC Foundations and Trusts offer distinct approaches to wealth protection and management. Trusts emphasize privacy and simplicity, while Foundations provide greater control, flexible governance, and strategic long-term benefits. Both structures support effective estate planning, asset protection, and succession management. 

Every legacy begins with a structure. For some, it’s the quiet assurance of a Trust, built on confidence and discretion. For others, it’s the enduring framework of a Foundation, designed for control, continuity, and purpose. Within the DIFC, one of the world’s leading financial jurisdictions, these two vehicles shape how families protect, manage, and pass on wealth. But understanding where they differ is what transforms wealth management into legacy planning. 

DIFC Foundations and Trusts: Understanding the Core Concept 

A DIFC Trust is a relationship built on confidence. It involves a settlor, who transfers assets to a trustee, who then manages those assets for the benefit of beneficiaries. The trust itself is a framework of rights and obligations defined under the DIFC Trust Law. 

A DIFC Foundation, in contrast, is a legal entity in its own right. Created under the DIFC Foundations Law, it operates independently, guided by its charter and by-laws, and is managed by a council rather than a trustee. This gives it a corporate structure and a distinct personality in the eyes of the law. 

Control and Governance: Different Paths to Stewardship 

The question of control often determines which structure is most suitable. 

With Trusts, once assets are transferred, the trustee assumes control. While the settlor may outline detailed intentions in the trust deed, their ongoing influence is limited. This structure works best for those who prioritize independence and protection over day-to-day involvement. 

Foundations, on the other hand, allow founders to retain a guiding hand. Through participation on the foundation council or advisory boards, they can influence how wealth is managed and distributed. The governance model mirrors that of a corporate entity  adaptable, layered, and aligned with strategic family objectives. 

Purpose: Beyond Asset Holding 

While both serve as protective vehicles, their applications differ in focus. 

Trusts have traditionally been used for estate planning and wealth transfer, ensuring that assets are safeguarded and distributed in line with the settlor’s wishes. They are particularly effective when privacy, flexibility, and beneficiary-based planning are priorities. 

Foundations, however, often cater to a broader set of purposes. Beyond asset protection, they are ideal for family offices, philanthropic initiatives, and corporate structuring. Their ability to separate management from ownership allows families to institutionalize wealth management, turning family capital into a long-term, strategic platform. 

DIFC Foundations and Trusts: The Advantages and Regulatory Backing 

Both DIFC Foundations and Trusts operate within DIFC’s internationally recognized common law framework, offering robust legal certainty and investor confidence. Trusts derive their legitimacy from the DIFC Trust Law, which ensures flexibility and clarity in creation and administration. Foundations, meanwhile, must register with the DIFC Registrar of Companies under the DIFC Foundations Law, gaining legal personality and benefiting from transparent, yet confidential, operational safeguards. 

This distinction makes Foundations particularly appealing to family offices and private wealth structures seeking a blend of transparency, credibility, and protection. 

Confidentiality: Privacy Preserved 

The DIFC Foundations and Trusts offer discretion and confidentiality, a hallmark of private wealth management. 

Trusts operate as private legal arrangements, and no details are publicly disclosed. 
Foundations, despite being registered entities, only publish limited information typically their name and purpose while keeping details of beneficiaries and assets confidential. 

Thus, both provide the privacy families and investors expect from DIFC’s world-class jurisdiction. 

Tax Efficiency of DIFC Foundations 

Recent updates under Ministerial Decision No. 261 of 2024 have further enhanced the appeal of DIFC Foundations. 

Under the decision, family foundations and their wholly owned subsidiaries, including single-family offices (SFOs), can qualify for tax transparency provided their activities are confined to asset management and investment rather than active trading or personal investments in UAE securities and real estate. 

This means eligible foundations can potentially enjoy full corporate tax exemptions on qualifying income, offering a tax-neutral framework for long-term wealth preservation. 

Trusts also maintain a tax-neutral standing, though the extent of that benefit may depend on the residency of the settlor and beneficiaries. 

DIFC Foundations and Trusts: Choosing What Fits Your Vision 

The decision between DIFC Foundations and Trusts ultimately depends on what you value most. 

If you seek simplicity, confidentiality, and a clear separation between ownership and control, a DIFC Trust offers a tried-and-tested solution. It’s especially suited for estate planning and discreet wealth transfers. If you prefer greater control, a defined governance framework, and long-term flexibility particularly for family offices or philanthropic structures, a DIFC Foundation provides a more strategic alternative. The recent tax transparency reforms make it even more advantageous for investment-focused families. 

Set Up Your DIFC Foundation with Confidence 

At MS, we make establishing your DIFC Foundation seamless and straightforward. From initial structuring to final registration, our experts handle every step with precision. We steer through the DIFC Foundations Law on your behalf, ensuring your foundation is tailored to your objectives whether focused on family wealth management, a single-family office, or philanthropic pursuits. Having understood the distinctions between DIFC Foundations and Trusts, MS helps you move from concept to execution with clarity and assurance. 

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FTA Clarifies Corporate Tax of Family Wealth Management Structures in the UAE

FTA Clarifies Corporate Tax of Family Wealth Management Structures in the UAE
FTA Clarifies Corporate Tax of Family Wealth Management Structures in the UAE

The Essentials

The UAE Federal Tax Authority (FTA) has clarified corporate tax of family wealth management structures, including family foundations, holding companies, SPVs, and family offices. The guidance explains when entities and family members qualify for tax transparency, outlines compliance requirements, and highlights exemptions on investment and real estate income, helping families manage wealth efficiently while staying fully compliant.

The UAE Federal Tax Authority (FTA) has recently issued clarifications on the corporate tax of family wealth management structures, offering crucial guidance for high-net-worth individuals, family offices, and their advisors. The clarification addresses the tax implications for entities such as family foundations, holding companies, Special Purpose Vehicles (SPVs), Single Family Offices (SFOs), Multi-Family Offices (MFOs), and family members, referencing Article 17 of Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 261 of 2024.

This guidance is intended to enhance transparency, clarify compliance obligations, and provide clarity on the conditions under which family wealth management structures may achieve tax-efficient status.

Corporate Tax of Family Wealth Management Structures

1. Family Foundations
 Foundations, trusts, or similar domestic or foreign vehicles can achieve tax transparency, meaning they are not considered taxable persons in their own right, if they meet the criteria outlined in Article 17(1) of the Corporate Tax Law.

  • Foundations with a separate legal personality must apply to the FTA for tax-transparent treatment.
  • Vehicles without a separate legal personality are automatically considered tax transparent.
  • This ensures that income generated through the foundation flows directly to beneficiaries without being taxed at the entity level, simplifying reporting and reducing potential tax liabilities.

2. Holding Companies & SPVs
 Entities wholly owned or controlled by a tax-transparent family foundation may also apply for tax transparency, provided they meet the relevant conditions.

  • If they do not qualify as tax transparent, these entities are taxable in their own right.
  • Such entities may still benefit from exemptions on certain income, including dividend income and income from holding activities if it is a QFZP.
  • Entities located in UAE Free Zones may qualify for a 0% corporate tax rate, subject to specific Free Zone criteria.

3. Single Family Offices (SFOs) & Multi-Family Offices (MFOs)
SFOs and MFOs are generally subject to corporate tax unless they meet the conditions for tax transparency. Key considerations include:

  • SFOs/MFOs must charge arm’s length fees when providing services to related parties to comply with transfer pricing rules.
  • Free Zone offices may benefit from a 0% corporate tax rate on Qualifying Income if they are regulated by competent authorities such as the DFSA, FSRA, or UAE Central Bank.
  • Unregulated offices do not qualify for these preferential rates on management or financial services income.

Corporate Tax Treatment of Family Members

Family members generally remain exempt from corporate tax of family wealth management structures on income received from:

  • Tax-transparent vehicles
  • Qualified family wealth management structures
  • Personal investment or real estate income

Exception: Tax liability arises if commercial business income from these holdings exceeds AED 1 million per year, ensuring that personal investment activities remain largely tax-efficient while larger business operations are appropriately taxed.

Corporate Tax of Family Wealth Management Structures: Implications and Key Takeaways

  • Assess Tax Transparency: Family foundations and other wealth management vehicles should evaluate whether applying for tax transparency is beneficial.
  • Prefer Regulated Free Zone Entities: Using regulated Free Zone structures can result in substantial exemptions for qualifying income.
  • Compliance Matters: Ongoing compliance and annual confirmation to the FTA are mandatory to maintain tax transparency status.
  • Family Member Considerations: Personal investment and real estate income generally remain exempt, but commercial business income thresholds must be monitored.
  • Dividend and Capital Gains Exemptions: Even non-transparent entities may benefit from exemptions on qualifying income streams.

How MS Can Help in Corporate Tax of Family Wealth Management Structures

MS provides comprehensive support to family offices, foundations, holding companies, and SPVs in understanding and applying corporate tax of family wealth management structures in the UAE. From evaluating eligibility for tax transparency and preparing FTA applications to advising on Free Zone benefits, compliance, and corporate tax planning, we help families and their advisors manage wealth efficiently, optimize tax outcomes, and ensure long-term preservation and growth of their assets.

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How the RAK ICC–DLD MoU Lets Your Company Set Up in RAK ICC Hold Freehold Property in Dubai?

MoU Lets Your Company Set Up in RAK ICC Hold Freehold Property in Dubai?
MoU Lets Your Company Set Up in RAK ICC Hold Freehold Property in Dubai?

The Essentials

The Dubai Land Department (DLD) has signed a memorandum of understanding with Ras Al Khaimah International Corporate Centre (RAK ICC), allowing companies registered under RAK ICC to own and register freehold properties in Dubai. This development provides investors pursuing a company set up in RAK ICC with direct access to Dubai’s property market, opportunities for portfolio diversification, and enhanced options for wealth structuring.

The Dubai Land Department (DLD) has signed a memorandum of understanding (MoU) with Ras Al Khaimah International Corporate Centre (RAK ICC), giving companies registered under RAK ICC the ability to own and register freehold properties in Dubai.

This marks a significant step for RAK ICC, which has grown into one of the UAE’s leading corporate registries, attracting international investors seeking efficient structures for holding, wealth planning, and asset protection. The MoU now extends these advantages into Dubai’s real estate sector, one of the region’s most attractive markets.

How the Agreement Works?

Under the MoU, RAK ICC companies can now apply to register freehold properties, land, or related rights in Dubai through DLD. To complete the registration process, those who are looking for a company set up in RAK ICC must:

  • Provide the required legal documentation proving ownership.
  • Submit a No Objection Letter from relevant stakeholders.
  • Pay registration fees in line with DLD’s procedures.

While the framework primarily targets companies with natural person shareholders, DLD can also approve registrations for companies involving juristic persons (corporate entities) or mixed ownership structures. This flexibility ensures that both small investors and structured holding companies can benefit from Dubai’s freehold property opportunities through their RAK ICC entity.

By following these steps, investors undertaking a company incorporation in RAK ICC can seamlessly integrate property ownership in Dubai into their corporate and investment strategies, enhancing both asset diversification and long-term growth potential.

Why This Matters for Investors Looking for Company Set up in RAK ICC?

For investors using RAK ICC, this MoU represents a new layer of opportunity:

  • Direct Entry to Dubai’s Property Market: Previously, freehold ownership in Dubai was restricted for many free zone companies. With this agreement, RAK ICC entities gain direct access.
  • Portfolio Diversification: Holding companies set up in RAK ICC can now expand their portfolios by adding Dubai-based residential, commercial, or mixed-use assets.
  • Wealth Structuring Advantage: RAK ICC companies are widely used for asset protection and succession planning. Owning Dubai property through these entities adds a real estate dimension to wealth structuring strategies.
  • International Appeal: Dubai’s reputation as a safe, high-yield property market enhances the global appeal of RAK ICC structures for investors.

Strategic Alignment Between Dubai and RAK ICC

The collaboration reflects a broader UAE trend of economic integration and cooperation between emirates. For DLD, working with RAK ICC allows it to extend regulatory expertise and encourage more investment into Dubai’s property market. For RAK ICC, the MoU strengthens its position as a preferred jurisdiction for international investors, adding real estate ownership to its portfolio of advantages.

This alignment supports Dubai’s long-term strategy of:

  • Attracting international capital.
  • Ensuring transparent, regulated property ownership pathways.
  • Expanding real estate investment options across different corporate structures.

Broader Context of DLD’s Initiatives

The MoU with RAK ICC is part of DLD’s wider efforts to improve access and services for investors. DLD has also signed agreements with other RAK government entities, as well as initiatives with banks and financial institutions to streamline real estate processes. Together, these efforts reflect Dubai’s ongoing ambition to remain a global hub for real estate innovation, investment, and regulation.

Company Set up in RAK ICC: The Outlook Ahead

For global investors, the RAK ICC–DLD MoU provides both security and opportunity. Companies undergoing a company formation in RAK ICC can now confidently acquire Dubai freehold property within a clear regulatory framework, opening new avenues for growth, wealth diversification, and long-term planning.

By combining the investor-friendly environment of a RAK ICC company set up with Dubai’s thriving property market, this partnership further strengthens the UAE’s position as a premier destination for international investment.

How Can MS Help with Company Set up in RAK ICC?

MS simplifies the process of establishing a company in RAK ICC, guiding investors to take full advantage of the new opportunity to own Dubai freehold property.

Our Support Includes:

  • Company Incorporation: Complete handling of applications, documentation, and approvals for company set up in RAK ICC.
  • Regulatory Compliance: Ensuring your entity meets all RAK ICC requirements.
  • Property Registration Guidance: Assistance with documentation and DLD coordination for Dubai freehold ownership.
  • Ongoing Corporate Services: Secretarial support, amendments, and compliance management.
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Your Wealth, Your Legacy: How Foundations in RAK ICC Make It Possible? 

Foundations in RAK ICC
Functionally, Foundations in RAK ICC is similar to a corporation in terms of governance and legal recognition but offers unique flexibility for asset protection, succession planning, and philanthropic activities. 

The Essentials 

RAK ICC Foundations are independent legal entities under the Ras Al Khaimah International Corporate Centre, designed to provide asset protection, succession planning, and long-term wealth management. With clear governance, perpetual existence, and robust legal safeguards, Foundations in RAK ICC allow founders to separate personal assets, define beneficiaries, and even pursue philanthropic goals, making them a powerful tool for preserving and growing wealth across generations in the UAE. 

Wealth is more than what you hold today – it’s the legacy you leave tomorrow. RAK ICC Foundations, established under the Ras Al Khaimah International Corporate Centre, offer a smart, secure, and flexible way to protect assets, plan succession, and support causes that matter. By functioning as independent legal entities with clear governance and perpetual existence, these Foundations give founders the power to preserve their legacy, safeguard their family’s future, and make a lasting impact in the UAE. 

What is a RAK ICC Foundation? 

A RAK ICC Foundation is a civil law-based, self-owning legal entity distinct from the founder’s personal estate. Unlike traditional trusts in common law jurisdictions, Foundations are independent legal persons with no shareholders or ownership rights. The assets contributed to a Foundation belong solely to it, providing a clear segregation of wealth between the founder and the Foundation. 

Functionally, Foundations in RAK ICC is similar to a corporation in terms of governance and legal recognition but offers unique flexibility for asset protection, succession planning, and philanthropic activities. 

Governance Structure of Foundations in RAK ICC 

The governance of a RAK ICC Foundation is structured to ensure compliance with the founder’s objectives while enabling independent management: 

  • Founder: The creator of the Foundation, either an individual or corporate entity, who contributes assets and defines the Foundation’s purpose. 
  • Council: The operational body responsible for day-to-day management, requiring at least two members. 
  • Guardian (optional): Provides oversight to ensure the Council operates in alignment with the founder’s intentions. The Guardian cannot be a Council member and may be the founder or an independent appointee. 
  • Qualified Recipients: Beneficiaries entitled to receive benefits or distributions from the Foundation. 
  • Designee: In scenarios without beneficiaries, the Foundation’s assets revert to a designated party or authority as specified in the Charter. 

Key Purposes and Benefits of Foundations in RAK ICC 

1. Asset Protection 

Foundations in RAK ICC are particularly effective in shielding assets from forced inheritance laws, creditor claims, and other external risks. By placing assets within the Foundation, founders create a legal barrier protecting family wealth, business holdings, or philanthropic funds. 

2. Succession and Estate Planning 

Founders can define the distribution of assets across generations through the Foundation’s Charter and by-laws, significantly reducing potential disputes among heirs. This makes Foundations ideal for families or corporate entities seeking long-term wealth continuity. 

3. Perpetual Asset Management 

Unlike some trusts, which have a limited duration, Foundations in RAK ICC have an unlimited lifespan, allowing assets to be managed and preserved indefinitely. This feature is especially beneficial for multi-generational planning. 

4. Philanthropic Activities 

Foundations can be structured for charitable purposes, enabling founders to support causes of personal or societal significance while maintaining governance, accountability, and transparency. 

Legal and Accounting Requirements 

Foundations in RAK ICC are subject to a clear but flexible regulatory framework: 

  • Governance Documents: Foundations operate under a Charter, defining legal identity, and By-laws, outlining operational rules. 
  • Accounting: Proper accounting records must be maintained. While annual audits are not mandatory, they are recommended for transparency and compliance. 
  • Legal Framework: Founders can choose the applicable law and dispute resolution mechanism, including courts in DIFC or ADGM, depending on preference. 
  • Privacy: RAK ICC maintains confidentiality by restricting access to detailed records, ensuring privacy for founders and beneficiaries. 

Foundations in RAK ICC: Recent Enhancements and Protections (2025 Amendments) 

The 2025 regulatory updates have strengthened the legal certainty and protection of RAK ICC Foundations: 

  • Firewall Provisions: Safeguard Foundations from conflicting foreign judgments. 
  • Three-Year Statute of Limitations: Limits challenges to Foundation establishment or asset transfers to three years, enhancing predictability. 
  • Cause of Action and Duress Protections: Assets transferred under coercion or creditor fraud are only affected to the extent necessary to resolve claims. 
  • Enhanced Arbitration Framework: Disputes can now be resolved through arbitration with powers comparable to courts, ensuring confidentiality and enforceability. 
  • Clarifications on Private Trustee Foundations: Defines responsibilities for assets held in trust by Foundations, providing regulatory clarity. 

Registration and Setup Process 

  • Application Submission: Includes the Foundation application signed by founders, Charter, By-laws, and Guardian’s consent if applicable. 
  • Documentation: Certified ID, proof of residence, Ultimate Beneficial Owner (UBO), and Source of Wealth declarations. 
  • Approval: Typically granted within three business days. 
  • Post-Registration Compliance: Open bank accounts, maintain records in line with anti-money laundering regulations, and submit annual returns. 

How MS Can Assist with RAK ICC Foundation Setup? 

MS provides comprehensive advisory and implementation services for RAK ICC Foundations, helping you structure Foundation to meet asset protection, succession, and philanthropic goals. We manage the entire setup process, including drafting the Charter and By-laws, facilitating Council and Guardian appointments, handling all registration formalities with RAK ICC, and ensuring ongoing compliance. With our guidance, you can establish a robust, secure, and well-governed Foundation tailored to their long-term objectives. 

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Optimizing Family Wealth Through Holding Companies in the UAE: Corporate Tax Rules Explained! 

Holding Companies in the UAE
Optimizing Family Wealth Through Holding Companies in the UAE: Corporate Tax Rules Explained!

The Essentials 

Holding companies in the UAE play a pivotal role in family wealth management and investment planning. Their tax treatment depends on structure, ownership, and compliance with UAE corporate tax rules, including eligibility for tax transparency, Free Zone incentives, and participation exemptions. When structured effectively, holding companies help families optimize tax efficiency, protect and consolidate assets, and ensure smooth intergenerational wealth transfer, making them a central tool for long-term wealth preservation and strategic financial planning. 

As the UAE strengthens its position as a global hub for wealth management, families are increasingly turning to holding companies to manage, protect, and grow their assets. These companies play a key role in consolidating investments, supporting governance structures, and enabling smooth transfer of wealth across generations. 

With the nation’s evolving corporate tax landscape, understanding the tax treatment of holding companies in the UAE is important. By structuring these entities effectively through family foundations, family offices, or Free Zone vehicles, families can maximize tax efficiency, access exemptions, and safeguard their wealth for the long term. 

Core Tax Principles for Holding Companies in the UAE 

A holding company within a family wealth structure may take several forms: it can have a separate legal personality as a distinct juridical person or exist within a transparent trust/foundation structure. 

  • Taxable Person Status: By default, a holding company with its own legal personality is considered a taxable person. It is liable for UAE corporate tax unless it satisfies requirements for “tax transparency” under Article 17 of the Corporate Tax Law. 
  • Tax Transparency: If the holding company is wholly owned and controlled by a tax-transparent family foundation (established for the benefit of individuals or public benefit entities), and if both entities apply to the FTA and meet Article 17 and Article 171 conditions, the holding company itself may also be treated as tax transparent. In such a case, income is not taxable at the company level but may be taxed when distributed to ultimate beneficiaries (subject to certain thresholds and exemptions). 
  • Free Zone Incentives: Many holding companies in the UAE are established in Free Zones. If a holding vehicle has Free Zone Person (FZP) status, and its main activity is “holding shares and other securities for investment purposes,” it may qualify for a 0% corporate tax rate on relevant income, provided it also meets substance and regulatory requirements and is classified as a “Qualifying Free Zone Person”. 

Holding Companies in the UAE: Dividend and Capital Gains Exemptions 

Certain forms of passive income such as domestic dividends and qualifying foreign dividends and capital gains may be exempt from UAE corporate tax under the “participation exemption.” To benefit: 

  • The holding company should have at least a 5% ownership stake in the subsidiary or investment. 
  • The investment should be held for at least 12 months. 
  • The foreign subsidiary should be subject to a tax rate not less than the UAE’s standard. 
  • Holding companies in the UAE must meet additional conditions on income distribution and substance, as required by law. 

Example Structures and Practical Scenarios for Holding Companies in the UAE 

Scenario 1: Tax Transparency Across the Structure 

  • A family foundation (tax transparent) owns a holding company (HoldCo), which in turn owns investment SPVs. 
  • All entities apply for, and receive, tax-transparent status under Article 171. 
  • None of the entities are considered taxable persons at the corporate level. Only distributions or income received by family members may be taxed under personal investment rules, if business income thresholds are exceeded (AED 1 million turnover). 

Scenario 2: Free Zone Person and Qualifying Activities 

  • HoldCo is registered as a Free Zone Person and carries out qualifying activities (e.g., owning shares/securities). 
  • Even if HoldCo is not tax transparent, it benefits from a 0% corporate tax rate on qualifying income and enjoys participation exemption for domestic and qualifying foreign dividends/capital gains, subject to compliance. 
  • Structure optimization focuses on sustaining Free Zone compliance and activity thresholds. 

Scenario 3: Taxable Person without Exemption 

  • Regular corporate tax treatment applies; passive income may still be exempt if participation exemption applies, but other business income is taxed at standard UAE rates. 

Compliance, Regulatory Oversight, and Practical Considerations 

  • Each entity must maintain clear documentation and apply to the FTA for tax-transparent status when eligible. 
  • Free Zone entities must ensure their activities remain within the “qualifying activities” list, and that regulatory oversight is maintained where required. 
  • Corporate tax planning should consider periodic legislative changes – for instance, on the meaning of “business income” or the conditions for the 0% Free Zone rate. 
  • Family members generally are not subject to corporate tax on investment income received from transparent structures, unless it constitutes business income above the AED 1 million threshold. 

For comprehensive guidance on structuring, managing, and optimizing your family assets, including holding companies in the UAE, family foundations, and SPVs, reach out to MS to benefit from our expert advice and tailored solutions. 

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Corporate Tax Impact Assessment in the UAE: Prepare Ahead of the 30 September 2025 Filing Deadline 

Corporate Tax Impact Assessment in the UAE

The Essentials 

With the corporate tax return in the UAE due by 30 September 2025 for businesses operating on a 1 January–31 December 2024 financial year, companies must go beyond basic filing and focus on a Corporate Tax Impact Assessment in the UAE. This assessment helps anticipate liabilities, manage cash flow, identify risks, leverage tax reliefs, and avoid penalties. Key areas include financial review, understanding the tax law, related-party transactions, cash flow impact, and compliance documentation. 

The UAE’s corporate tax framework has introduced new responsibilities for businesses, with the first major milestone fast approaching. Companies operating on a financial year from 1 January 2024 to 31 December 2024 are required to submit their first corporate tax return by 30 September 2025. 

This timeline is an opportunity to evaluate how corporate tax will shape the way a business manages its finances and operations. Simply preparing figures for submission may satisfy the deadline, but it does not address the deeper implications that tax regulations bring. 

A Corporate Tax Impact Assessment in the UAE provides that wider perspective. By reviewing financial data, mapping obligations against the law, and assessing operational readiness, businesses gain clarity on their true position. This process helps prevent unexpected liabilities, ensures compliance, and allows companies to approach the deadline with both accuracy and foresight. 

Why Corporate Tax Impact Assessment in the UAE Matters Before Filing? 

Corporate tax in the UAE has the power to reshape how businesses plan their finances, structure their operations, and even make long-term strategic decisions. Conducting a Corporate Tax Impact Assessment in the UAE before filing ensures that companies are not only meeting their regulatory obligations but also protecting themselves from hidden risks and positioning for better financial outcomes. 

Here’s why it matters so much: 

  • Anticipating Liabilities and Planning Cash Flow 

Corporate tax introduces a new financial outflow that must be carefully managed. Without forecasting the amount of tax payable, businesses risk sudden cash flow shortages that can disrupt working capital, payroll, or planned investments. A corporate tax impact assessment in the UAE helps estimate the likely tax liability well before the deadline, giving management time to set aside funds and avoid liquidity pressures. 

  • Identifying Risks and Gaps 

Filing a return without proper review can expose a business to errors such as claiming ineligible expenses, missing required disclosures, or failing to document related-party transactions correctly. These gaps not only increase the chances of penalties but also raise the likelihood of a tax audit. By reviewing records, contracts, and intercompany dealings, the assessment highlights areas that need correction before submission. 

  • Leveraging Tax Reliefs and Opportunities 

The corporate tax framework in the UAE provides room for deductions, exemptions, and relief measures, but these must be identified and applied correctly. For example, certain expenses may be deductible, specific industries may enjoy relief, and restructuring transactions may reduce overall tax liability. An impact assessment ensures that businesses maximize these opportunities and do not leave money on the table. 

  • Avoiding Penalties and Regulatory Scrutiny 

Mistakes in reporting, underpayment of taxes, or late filing can result in significant penalties. In some cases, repeated errors can even damage a company’s credibility with regulators and financial institutions. A thorough corporate tax impact assessment in the UAE provides a safeguard by ensuring every number reported is accurate, supported by documentation, and compliant with regulations. 

Key Focus Areas for a Corporate Tax Impact Assessment in the UAE 

  • Financial Review – Ensure books are reconciled and aligned with corporate tax rules. 
  • Understanding the Corporate Tax Law – Identify taxable revenues, deductible expenses, and applicable exemptions. 
  • Related-Party Transactions – Confirm documentation supports fair market (arm’s-length) pricing. 
  • Cash Flow Impact – Assess how tax payments will affect working capital and liquidity. 
  • Compliance and Documentation – Prepare all required schedules, contracts, and supporting certificates. 

How MS Can Help in Corporate Tax Impact Assessment in the UAE? 

MS partners with businesses to turn corporate tax compliance into a strategic advantage. We assess the tax impact on your operations, highlight potential risks, and guide you in structuring your filings for accuracy and efficiency. With our expertise in UAE regulations, we ensure you meet deadlines seamlessly while creating opportunities for tax optimization. 

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Redefining Modern Living: Exploring the Unique Lifestyle in the UAE and Its Global Influence 

Lifestyle in the UAE

The Essentials 

The lifestyle in the UAE is being redefined by blending innovation, cultural heritage, and sustainability into a way of living that is both aspirational and attainable. From futuristic urban experiments and eco-luxury developments to thriving arts and wellness movements, the Emirates are setting new global standards for how people live, work, and connect. 

From the desert sands to record-breaking skylines, the UAE has always been a land of bold vision. Today, that vision is no longer limited to towering landmarks or mega-projects—it extends to something more personal: the way people live. The lifestyle in the UAE is quietly, yet powerfully, being curated into a world-class experience that blends innovation, cultural richness, and sustainability, setting a model the world is beginning to follow. 

Redefining Modern Living: The Lifestyle in the UAE 

Where Heritage Meets the Future 

What makes the UAE’s lifestyle so compelling is its harmony between past and present. A stroll through Dubai’s Al Fahidi Historical District or Sharjah’s souks immerses you in centuries-old traditions. Yet, just minutes away, you’ll find AI-powered homes, driverless cars, and futuristic shopping experiences. In this seamless coexistence of pearling heritage and flying taxis, Arabic calligraphy and AI algorithms, the UAE demonstrates that progress doesn’t erase identity but amplifies it. 

The UAE’s Urban Experiments 

Few places embrace experimentation like the Emirates. Dubai is trialing air taxis and hyperloop transport, while Abu Dhabi explores four-day workweeks and AI-driven governance models. Masdar City continues to stand as a pioneering example of how an urban space can be sustainable, technologically advanced, and deeply human-centered. These innovations are shaping the lifestyle in the UAE, creating everyday environments that promote healthier, more balanced living. 

Culture: The Soul of Progress 

Despite its futuristic outlook, the UAE keeps culture at the core of its evolution. Art Dubai, Sharjah Biennial, and Abu Dhabi Art are reshaping the global art calendar, while homegrown designers gain international recognition for their creativity. World-class institutions like the Louvre Abu Dhabi and the soon-to-open Guggenheim bring global narratives to the region while celebrating local stories. In doing so, the UAE proves that modern lifestyles are richer when rooted in culture. 

Luxury and Sustainability in Sync 

In the Emirates, the fusion of sustainability and luxury feels instinctive. From solar-powered villas and electric supercars to eco-conscious fashion shows and green-certified skyscrapers, the country shows that indulgence and responsibility can thrive together. For a new generation of global citizens, especially Gen Z, this resonates deeply. They want more than opulence; they want authenticity, accountability, and immersive experiences. The UAE offers precisely that. 

Aligned with Global Lifestyle Shifts 

Around the world, wellness, transparency, and tech-enabled ease are becoming the new standards of living. The UAE has not only kept pace but often stayed ahead. Wellness resorts in Ras Al Khaimah, smart healthcare ecosystems in Dubai, and eco-friendly developments across the Emirates reflect the evolving lifestyle in the UAE. Here, innovation is about creating environments where people can live better, not just faster. 

Lifestyle in the UAE: Living the Future, Today 

In the UAE, the future is already woven into everyday life. By uniting heritage with innovation, luxury with sustainability, and wellness with technology, the Emirates are shaping a lifestyle that feels both aspirational and attainable. This unique approach doesn’t just position the UAE as a hub for progress; it redefines what it means to live well in the 21st century and invites the world to follow its lead. 

How MS Can Help Shape Your Lifestyle in the UAE? 

With a strong presence in DIFC and ADGM, and years of experience guiding businesses, families, and investors, MS helps you align with the lifestyle in the UAE and the country’s vision of a world-class living experience. Whether it’s structuring entities, ensuring regulatory compliance, exploring market opportunities, or building sustainable growth strategies, MS stands as a trusted partner in turning ambition into lasting success. 

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Call the UAE Home: Who Qualifies for the Golden Visa in the UAE and What It Offers? 

Who Can Apply for the Golden Visa in the UAE

The Essentials 

The Golden Visa in the UAE is redefining long-term residency by offering up to ten years of stability, security, and opportunity for investors, professionals, and exceptional talent. From property investors to entrepreneurs, scientists, and creatives, the program provides a chance to belong, grow, and contribute to the UAE’s thriving economy.  

For decades, the UAE has stood as the place where ambition finds opportunity. Its transformation from a desert landscape into a global hub for business, innovation, and lifestyle is nothing short of remarkable. Yet, for many who chose to live and work here, one uncertainty remained: their permanence in this story. Short-term visas often meant that building a career, launching a business, or establishing a home felt temporary and always subject to renewal. 

The introduction of Golden Visa in the UAE rewrites that narrative. Designed to welcome the world’s brightest minds, boldest investors, and most exceptional talents, it offers not just extended residency but a genuine sense of belonging. 

A Residency That Reflects the UAE’s Global Vision 

The UAE has never hidden its ambition: to be a global destination for talent and capital. The Golden Visa is part of that strategy. By extending residency for up to ten years, it signals stability in a region known for rapid growth. For the country, it means a committed pool of professionals, entrepreneurs, scientists, and investors shaping the future economy. For residents, it means the confidence to call the UAE home without the clock constantly ticking. 

Golden Visa in the UAE: Why Real Estate Remains the Golden Gateway? 

The Golden Visa opens doors to a wide spectrum of achievers, from entrepreneurs to scientists and students, yet one pathway has become the clear favorite: real estate investment. 

In the UAE, eligibility often begins with property valued at AED 2 million or more. Both completed and mortgaged properties can be considered, making this route both flexible and practical. 

Why does it dominate applications? Because it pairs financial growth with security: 

  • A lasting asset with the potential for appreciation. 
  • 10-year renewable residency without reliance on a sponsor. 
  • Family inclusion, covering spouses and children. 
  • Freedom to travel abroad without the risk of losing residency. 

For many, property in the UAE is cornerstone of permanence transforming ownership into opportunity, and a house into a future. 

Who Can Apply for the Golden Visa in the UAE: A Wider Circle Than You Think! 

Although real estate remains the most popular route, the Golden Visa in the UAE is never intended only for investors or high-net-worth individuals. It was designed to attract diverse talent that contributes to the UAE’s growth story. 

  • Investors and property buyers with qualifying real estate or capital commitments. 
  • Entrepreneurs and founders leading innovative ventures. 
  • Doctors, scientists, and specialists in fields vital to national development. 
  • Outstanding students and academics with exceptional records. 
  • Artists and cultural figures whose work has earned local or international recognition. 

This broader scope reflects the UAE’s vision: to welcome not just wealth, but ideas, innovation, and creativity that enrich the nation for the long term. 

The Golden Visa Lifestyle: Security, Freedom, and Opportunity 

The appeal of the Golden Visa in the UAE is best understood in lived realities: 

  • Security of Stay: No more frequent renewals or sponsorship worries. A ten-year horizon means long-term planning is possible. 
  • Family Inclusion: Spouses, children, and in some cases parents, are part of the package. The program recognises that talent rarely moves alone. 
  • Freedom of Travel: Unlike standard residency permits, extended absences from the UAE don’t automatically cancel the visa. 
  • Property and Banking Privileges: Holders often enjoy easier access to property ownership in freehold zones and more flexibility in financial dealings. 
  • Tax Efficiency: With no personal income tax and investor-friendly frameworks, residents keep more of what they earn and grow. 
  • Healthcare and Education Access: Residency means access to world-class hospitals, clinics, and international-standard schools. 

The value here is in the quality of life and certainty it provides. 

Now Is the Moment: Why the Golden Visa in the UAE Matters Today? 

The global war for talent is intensifying. Countries are rolling out golden visas or residency-by-investment schemes. The UAE stands apart because of its unique mix: a safe and stable environment, cutting-edge infrastructure, and its geographic role as a bridge between East and West. 

For investors, it is a gateway into one of the most dynamic markets in the Middle East. For professionals, it’s a chance to contribute to industries that are being actively supported by government vision –  from fintech to sustainability to space exploration. 

Investing in People, Not Just Permits 

What truly sets the Golden Visa in the UAE apart is what it represents. It isn’t just a document that allows you to stay longer. It is an invitation to become part of the UAE’s future. The country isn’t looking for temporary residents; it’s seeking long-term partners, people who will innovate, invest, and integrate into the next chapter of its growth story. 

Whether you’re an entrepreneur setting up in Dubai, a scientist working in Abu Dhabi, or a family seeking stability in one of the world’s safest countries, the program offers a place to belong and a chance to build, not just stay. 

Partner with MS for Your Golden Visa Journey 

At MS, we make sure you get your Golden Visa in the UAE without unnecessary delays or complications. 

From evaluating your eligibility to preparing documentation and liaising with UAE authorities, our specialists handle the details with precision. Whether your path is through property investment, entrepreneurship, or professional excellence, we tailor our support to your unique profile. 

With a proven track record in corporate and residency solutions across the UAE, MS is the trusted partner for individuals and families ready to secure their long-term future in the Emirates. 

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DIFC SPVs for Real Estate: Risk Management and Investment Opportunities Explained!

DIFC SPVs for Real Estate

The Essentials 

Dubai’s real estate market continues to attract global investors, but managing complex projects requires structures that are flexible, credible, and legally robust. DIFC SPVs for real estate provide an ideal solution, offering risk isolation, corporate governance, and international recognition, while enabling efficient cross-border financing and regulatory compliance. From holding real estate assets and managing intellectual property to ensuring operational clarity and dispute resolution, DIFC SPVs empower developers and investors to execute projects with confidence.

As Dubai continues to attract global investors and ambitious real estate projects, the need for robust, flexible, and internationally recognized structures has never been greater. DIFC SPVs for real estate offers a solution that combines legal certainty, operational efficiency, and risk isolation, making it an ideal choice for managing complex property investments. By leveraging the predictability of common law, strong corporate governance, and neutral dispute resolution frameworks, DIFC SPVs for real estate provide a transparent and credible structure for developers and investors alike. 

Beyond protecting assets and streamlining operations, it facilitates cross-border financing, simplifies regulatory compliance, and enables scalable project management ensuring that real estate ventures in Dubai are executed with precision. 

Why DIFC SPVs for Real Estate Projects Are the Ideal Choice? 

The DIFC SPVs are designed with flexibility, neutrality, and international credibility in mind. For real estate, this translates into distinct advantages: 

  • Common Law Predictability 
    DIFC follows a common law system based on English law, making it familiar to international brands and their legal teams. Unlike the UAE’s civil law system, offering greater comfort for cross-border licensing, financing, and shareholder arrangements. 
  • Tailored Corporate Purpose 
    DIFC SPVs can be structured for narrowly defined purposes such as holding a real estate development, managing IP rights, or acting as the licensing and contracting entity. This focused approach reduces operational risk and enhances transparency for investors. 
  • Enhanced Governance & Neutrality 
    Global brands are often concerned about governance when entering new markets. Housing the project in a DIFC SPV reassures them with established corporate governance standards, shareholder rights protections, and the availability of DIFC-LCIA arbitration as a dispute resolution mechanism. 

DIFC SPVs for Real Estate: Legal and Intellectual Property Structuring 

Successful real estate projects rely on carefully structured agreements, especially around intellectual property and brand management. Leading brands don’t simply allow their name to be used, they establish comprehensive contracts covering IP rights, design standards, marketing, and exclusivity. DIFC SPVs for real estate purposes serves as an ideal entity to hold and manage these agreements, ensuring legal protection, operational clarity, and risk isolation for both developers and investors. 

  • IP Holding & Licensing 
    A DIFC SPV can serve as the licensee of the global brand’s intellectual property and then sublicense the rights to the developer or operating entity. This creates a clear separation between IP ownership and development risks. 
  • Safeguarding Exclusivity 
    Brands often grant exclusivity for certain categories (e.g., “only one residence in Dubai for 10 years”). DIFC law enables enforceable exclusivity clauses and remedies, protecting both brand and developer from dilution. 
  • Neutral Dispute Resolution 
    With high-stakes contracts, disputes are inevitable. DIFC’s arbitration and court framework offers brands a neutral, internationally recognized forum for resolution – a key comfort factor compared to purely local forums. 

Commercial Advantages of DIFC SPVs for Real Estate for Developers and Investors 

  • Premium Positioning & Investor Confidence 
    Branded projects attract discerning buyers willing to pay higher premiums. Structuring through a DIFC SPV adds another layer of confidence: investors recognize the oversight, corporate governance, and regulatory robustness that DIFC provides. 
  • Efficient Cross-Border Financing 
    Many real estate deals involve international lenders, investment funds, and brand owners located outside the UAE. DIFC’s status as an international financial centre allows SPVs to raise, structure, and repatriate capital more efficiently than onshore entities. 
  • Ring-Fencing Liabilities 
    By isolating each development within its own DIFC SPV, developers can ensure that risks (construction disputes, financing defaults, operational failures) do not spill over into other ventures or the brand’s wider portfolio. 
  • Replicability & Scalability 
    Once a successful SPV model is established, it can be replicated across multiple projects with different brands, creating a standardized playbook that accelerates negotiations and reduces legal friction. 

Regulatory Interfaces: Balancing DIFC with Onshore Dubai 

While DIFC SPVs offer robust structuring benefits, real estate projects must also operate within Dubai’s regulatory ecosystem. The interplay between jurisdictions is critical: 

  • RERA (Real Estate Regulatory Agency): Oversight of off-plan sales, escrow accounts, and buyer protection measures. Even if the project is held via a DIFC SPV, RERA approvals are mandatory for marketing and sales. 
  • DET (Department of Economy and Tourism): Hospitality-linked projects, such as resorts or serviced residences, require licensing and compliance with DET regulations. 
  • Dubai Building Code (DB Code): Mandates safety, sustainability, and design standards. For premium residences, this often intersects with brand-specific design guidelines. 

Why Choose MS for Setting Up DIFC SPVs for Real Estate 

MS combines deep local expertise with international structuring knowledge to simplify the setup of DIFC SPVs for real estate. We provide end-to-end support, from entity registration to regulatory approvals, while designing SPV structures that safeguard intellectual property, maintain brand exclusivity, and optimize licensing arrangements. Our team ensures robust corporate governance, compliance with DIFC regulations, and readiness for DIFC-LCIA arbitration, giving investors and brands confidence in your project. With cross-border financial advisory, scalable SPV models, and a clear understanding of Dubai’s real estate ecosystem, MS delivers a seamless, credible, and investor-friendly DIFC SPVs for real estate setup that aligns with both local requirements and global best practices.