[World Tax News] UAE Releases Corporate Tax Guide on “Investment Funds and Investment Managers and More

Editorial Team – [2024] 162 taxmann.com 346 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the Tax happening in the world this week.

1. UAE releases Corporate Tax Guide on “Investment Funds and Investment Managers”

The Federal Tax Authority has recently published a corporate tax guide outlining various provisions for Investment Funds and Investment Managers. This guide is designed to provide general guidance to help persons understand the UAE Corporate Tax treatment for investment funds, investors, and investments with the assistance of Investment Managers. This guide explains some of the terms and conditions in the Corporate Tax Law and sets out the following:

(a) An overview of the meaning of Qualifying Investment Fund and Investment Manager,

(b) Conditions for a Qualifying Investment Fund to be exempt from Corporate Tax,

(c) Conditions for a Real Estate Investment Trust (“REIT”) to be exempt from Corporate Tax,

(d) Tax implications for an investor investing in a Qualifying Investment Fund,

(e) Conditions for a foreign person to benefit from the Investment Manager Exemption as specified under Article 15 of the Corporate Tax Law and

(f) Relevant Corporate Tax compliance requirements for the above.

Any Person seeking to apply either the exemption for Qualifying Investment Funds or the Investment Manager Exemption. This guide will be useful for investors, financial advisors, tax professionals, and individuals involved in managing or advising investment funds and provides insights into tax implications, exemptions, and regulations relevant to these entities.

Source: Corporate Tax Guide on Investment Funds and Investment Managers

2. China publishes measures for the management of beneficial owner information

To improve market transparency, maintain market order and financial order, and prevent and curb money laundering and terrorist financing activities, the People’s Bank of China has formulated measures in accordance with the relevant laws and administrative regulations on anti-money laundering and enterprise registration management.

In accordance with these provisions, the following entities shall register beneficial owner information through relevant registration systems:

(a) Company;

(b) Partnership;

(c) Branches of foreign companies;

(d) Other entities specified by the People’s Bank of China and the State Administration for Market Regulation

Individual industrial and commercial households do not need to record beneficial owner information. Further, adhering to various conditions, the exemption is provided if the registered capital (capital contribution) does not exceed RMB 10 million (or equivalent foreign currency) and all shareholders and partners are natural persons.

For the purpose of these measures, a natural person who meets one of the following conditions shall be the beneficial owner of the registration entity:

(a) Ultimately owning more than 25% of the equity, shares or partnership interests of the registered entity through direct or indirect means;

(b) Although it does not meet the first criterion, it ultimately enjoys more than 25% of the income rights and voting rights of the filing entity;

(c) Although it does not meet the first criterion, it exercises actual control over the filing entity individually or jointly.

Filing entities that have been registered before the implementation of these Measures shall register beneficial owner information in accordance with the provisions of these Measures before November 1, 2025. These Measures will come into effect on November 1, 2024.

Source: Measures for the Management of Beneficial Owner Information