On 19 September 2025, the Federal Tax Authority issued a Public Clarification (CTP008) detailing the corporate tax treatment of family wealth management structures. This Public Clarification provides important guidance in determining whether Family Foundations and related entities may be treated as tax transparent for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
With this Public Clarification, the Federal Tax Authority confirms that the Corporate Tax Law provides flexibility for family wealth management structures to achieve tax transparency, ensuring these structures can be tax neutral provided the relevant legal and regulatory conditions are met.
This supports efficient wealth management and succession planning while maintaining compliance with the UAE's corporate tax framework.
In this Alert, our Tax Partner, Olivier Remacle, and our Tax Principal, Barbara Schwartz, explain the corporate tax treatment of several distinct entities generally included in family wealth management structures. These typically are: a Family Foundation and related entities such as a holding company, a Special Purpose Vehicle, a Single Family Office or a Multi Family Office, and finally the individual family members.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
