In the UAE, many individuals strategize personal wealth management, asset protection, and legacy planning by establishing a family foundation structure. UAE Foundations are subject to UAE Corporate Tax (CT) but careful planning can mean that the effective rate of CT is 0%. It is crucial that when a foundation serves solely to hold and oversee assets for the benefit of beneficiaries, its CT treatment differs from that of individuals directly managing the assets. Foundations should conduct a comprehensive analysis, weighing the pros and cons of tax transparency against other CT Reliefs/Exemptions. It is recommended to simulate the alternatives to make informed decisions.
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AUTHORS
Keerthi Voodimudi
Director – Tax
Neil Guthrie
Senior Director – Finance & Tax
