UAE FTA Issues New Guidance on Family Wealth Management Structures

The UAE Federal Tax Authority (FTA) has released a new Public Clarification (CTP008) addressing how Corporate Tax applies to family wealth management structures, including multi-tier setups, family offices, holding companies, and beneficiaries. This marks an important step in clarifying the treatment of such structures under the UAE’s evolving tax regime.

What the Guidance Covers

The clarification provides direction on:

• The corporate tax implications for family offices and holding structures.

• How Special Purpose Vehicles (SPVs) and multi-tier arrangements are treated.

• The tax status of beneficiaries under these structures.

• Conditions under which entities may qualify for exemptions or specific reliefs.

Why It Matters for Family Offices

For years, many family offices have faced ambiguity in tax treatment, particularly when structuring:

• Holding companies

• Intra-family financing arrangements

• Multi-generational succession vehicles

The lack of clarity often led to inefficiencies, duplicated structures, or unnecessary risk exposure. With this new guidance, family offices in the UAE now have a more defined framework, enabling them to make strategic decisions about structuring, compliance, and governance.

Impact on Family Office Strategy

The FTA’s clarification is expected to:

• Reduce uncertainty in wealth structuring and succession planning.

• Enhance transparency for families consolidating assets under holding vehicles or SPVs.

• Support long-term confidence in Dubai and the UAE as a secure jurisdiction for family wealth.

• Encourage family offices to reassess their current structures, ensuring alignment with the clarified rules.

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As Dubai continues to strengthen its position as a global hub for family offices and private capital, clear regulatory guidance is critical. This latest FTA clarification represents a milestone in aligning the UAE’s tax framework with international best practices while maintaining its competitive appeal to ultra-high-net-worth families.

For family offices, this is an opportune moment to review existing structures, consult with advisors, and ensure compliance, while also positioning themselves to take advantage of the UAE’s long-term wealth management ecosystem.