Hyderabad, April 6 -- The United Arab Emirates (UAE) Ministry of Finance has issued a new directive outlining when a foreign (non-resident) individual or entity is considered to have a taxable presence-or 'nexus'-under the country's Corporate Tax Law. This replaces an earlier decision from 2023.

The clarification focuses on non-resident juridical investors in Qualifying Investment Funds (QIFs) and Real Estate Investment Trusts (REITs). A taxable nexus arises only in specific circumstances.

In the case of QIFs that exceed the permitted real estate investment threshold, a nexus is established either:

On the date dividends are distributed, provided the QIF allocates at least 80 percent of its income within nine months of the end of its fi...