We manage a foreign fund's investments from the UAE — does that create a taxable presence for it here?

One of the biggest concerns for investment managers based in the UAE is that their mere presence here could create a Permanent Establishment for the foreign fund or investor whose money they manage, unexpectedly exposing that foreign fund to UAE Corporate Tax. That's why the Corporate Tax Law includes an Investment Manager Exemption, which stops that presence alone from creating a Permanent Establishment — provided a set of precise conditions is met.

Key conditions include: the investment manager must be licensed and regulated by a recognized authority in the UAE, or in a jurisdiction approved by the Ministry of Finance; it must employ at least three UAE-resident investment professionals; and it must not hold an ownership interest in the foreign fund except below 10% and solely for the purpose of delivering the service. It also must not interfere in day-to-day management or director appointments, must be compensated purely through service fees without directly sharing in profits or losses, and must keep its services limited to investment management — excluding accounting, legal, tax, or administrative services.

RASEEKH helps investment managers and asset management offices in the UAE carefully review their contractual, staffing, and ownership structure to confirm every condition is genuinely met before relying on this exemption — because a single missing condition can undo the whole position.