RIYADH: Aimed at boosting compliance and providing clear guidance, the UAE Ministry of Finance on Saturday made new changes to its corporate tax framework as it repealed and replaced the existing executive regulation. The move is aimed at ensuring alignment with the New Tax Procedures Law, which came into effect on March 1, 2023, reported Emirates News Agency, or WAM. The ministry introduced the amendments to update relevant legislation and provide the taxable people with the necessary guidance of the UAE tax system with Corporate Tax Law that became applicable from June 1. Among the key provisions, the cabinet decision outlined the requirements for maintaining accounting records and commercial books, specifying the period and manner of record-keeping, the report stated. It also introduced updates related to tax agent registration and de-listing procedures, emphasizing the need for communication in Arabic or English. According to Younis Al-Khoori, undersecretary of the Ministry of Finance, the additional conditions set forth through the new Cabinet decision are clear and simple to apply. He added that these conditions serve the UAE to retain its position as a leading investment hub. “This decision balances the UAE remaining competitive as an investment hub, while maintaining the integrity of the Corporate Tax system,” Al-Khoori was quoted by WAM as saying. The ministry also announced a cabinet decision outlining additional conditions for qualifying investment funds under the taxation of corporations and businesses. The decision also stipulated additional conditions for exempting investment funds from corporate tax, which included being primarily engaged in investment business activities, with ancillary or incidental activities not exceeding 5 percent of their total annual revenue. The other condition included the share of ownership interests in the investment fund held by a single investor and its related parties should not exceed 30 percent or 50 percent, depending on the number of investors in the investment fund. It added that the fund must be overseen by an investment manager employing at least three investment professionals. Also, the fund’s day-to-day management must not be controlled by investors. To ensure the flexibility of the corporate tax system, the government said the diversity of ownership criteria for investment funds, other than REITs, will be non-binding for the first two financial years of the fund’s establishment. However, it added that the intent to diversify its ownership after the first two financial years needs to be substantiated. Regarding REITs, the exemption conditions include the necessity for real estate assets, excluding land held by the REIT, to exceed 100 million dirhams in value, according to the government directive. It added that a minimum of 20 percent of REIT’s share capital should be publicly listed or wholly owned by two or more institutional investors. While an average real estate asset percentage of at least 70 percent should be maintained annually.