Optimizing your SPV/PresCo’s Tax Position — Roadmap

As we navigate the evolving landscape of Corporate Tax (CT) in the UAE, we highlight key points and strategic opportunities available to your organization.

Key Compliance Dates

• CT applies to financial years starting from June 1, 2023.
• Businesses with a standard financial year (January to December) are subject to CT starting from January 2024.

Ongoing Obligations

• To maintain compliance, your organization must:
• Register for CT once
• Maintain accurate accounting records
• Ensure arm’s length transactions
• Prepare transfer pricing documentation
• Submit tax returns annually

Strategic Tax Reliefs and Exemptions

We have identified several opportunities, including:

• Tax Transparency: Eligible Foundations may exempt individuals from CT on certain income.
• Participation Exemption: Eligible dividends and capital gains may be exempt from CT.
• Free Zone Relief: Passive holding entities may benefit from 0% tax under certain conditions.
• Small Business Relief: Small businesses may elect to be treated as not having derived any Taxable Income.

Next Steps

Consult with our team to discuss how these developments may impact your organization and explore potential opportunities for tax savings and compliance. Please contact us if you require further clarification or assistance.

Who we are

M/HQ is a multi-services platform catering to financial institutions as well as single family offices and sophisticated private investment companies. Our one-stop-shop offering is unique in the Middle East: a holistic and cross-disciplinary blend of a leading corporate services firm, a private client specialist team, and a regulatory & compliance services practice, all through one single platform.

We have extensive experience advising on a broad range of wealth structuring and legacy planning issues. We particularly assist in establishing and servicing Family- and Group- Holdings, Single- and Multi- Family offices, Foundations, and other asset consolidation/protection and intergenerational wealth management structures. For financial institutions, we provide tailored solutions that address complex regulatory and compliance requirements, ensuring that operations are both secure and efficient.

Headquartered in the UAE, we are an entrepreneurial firm for entrepreneurial clients.