Middle East: Tax

A UAE Family Foundation is not automatically exempt from Corporate Tax. However, it may elect to be treated as tax transparent under Article 17 if it satisfies the Federal Tax Authority’s conditions. The latest guidance clarifies how this applies to trusts, holding structures, asset transfers and family offices.

Investors approaching the UAE market tend to encounter a free zone in UAE early because of streamlined registration, full foreign ownership, complete foreign ownership rights, full repatriation of profits and capital, and tax advantages such as no personal income tax and, in many cases, 0% corporate tax for qualifying businesses. Over time, UAE free zones have become embedded in how businesses and investment structures are built across the region, attracting both foreign investors and international businesses.

The intention of this article is to give practical advice and information to entrepreneurs wanting to relocate in the UAE region. Besides the initial excitement of relocating to a business friendly jurisdiction which is also vibrant and packed with expats, there are some key matters an entrepreneur must consider prior to their decision.

تُعد الاتفاقية النموذجية لمنظمة التعاون الاقتصادي والتنمية (OECD Model Tax Convention on Income and on Capital) المرجع الأساسي الذي تستند إليه غالبية اتفاقيات تجنب الازدواج الضريبي المبرمة بين الدول، كما تمثل ال.

The OECD Model Tax Convention on Income and on Capital constitutes the primary reference upon which most bilateral tax treaties for the avoidance of double taxation are based. The accompanying OECD Commentaries serve as an essential interpretative source for understanding the meaning and application of the Convention’s provisions.

With the expansion of international business activities and investments, determining tax residency has become an important matter for individuals and companies that have transactions or sources of income in more than one country.

تُعد الاتفاقية النموذجية لمنظمة التعاون الاقتصادي والتنمية (OECD Model Tax Convention on Income and on Capital) المرجع الأساسي الذي تستند إليه غالبية اتفاقيات تجنب الازدواج الضريبي المبرمة بين الدول، كما تمثل ال.

A UAE Family Foundation is not automatically exempt from Corporate Tax. However, it may elect to be treated as tax transparent under Article 17 if it satisfies the Federal Tax Authority’s conditions. The latest guidance clarifies how this applies to trusts, holding structures, asset transfers and family offices.

The OECD Model Tax Convention on Income and on Capital constitutes the primary reference upon which most bilateral tax treaties for the avoidance of double taxation are based. The accompanying OECD Commentaries serve as an essential interpretative source for understanding the meaning and application of the Convention’s provisions.

The Council of Ministers has approved significant tax relief measures for private universities, colleges, and institutes in Iraq, offering exemptions from penalties and additional charges on income tax and withholding tax obligations. These exemptions range from 50% to 100% depending on how quickly institutions settle their principal tax liabilities and complete mandatory tax reconciliation procedures within specified timeframes.

On 16 March 2026, Decision of the Council of Ministers No. 4 of 2026 entered into force. The Decision introduces a mechanism allowing the direct application of withholding tax rates under double tax treaties.

ZATCA has relaunched the Tax Penalties Exemption Initiative, effective January 1 to June 30, 2026, offering taxpayers a renewed opportunity to regularize their tax positions.