By introducing a corporate tax, the United Arab Emirates (UAE)/Dubai reaffirmed its commitment to international standards of tax transparency and the prevention of harmful tax practices.

This corporate tax, which came into force on June 1, 2023, is governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf), (“Federal Decree-Law No. 47 of 2022“).

Taxable companies will now have to register for corporate tax (https://tax.gov.ae/en/services/corporate.tax.registration.aspx) and obtain a corporate tax registration number from the Federal Tax Authority, which is the competent authority for corporate tax matters.

The corporate tax return must be filed for each tax period within 9 months of the end of the tax period.

As regards the rate applicable to this new tax, taxable income over 375 000 AED will be taxed at a rate of 9%, while income below this threshold will be taxed at a rate of 0% (Article 3 of the law).

On reading this Federal Decree-Law No. 47 of 2022 (1.), we understand that its scope is quite wide without being absolute, which will have the effect of subjecting a certain number of people to the tax (1.a), while providing for exemptions under some conditions (1.b).

Furthermore, although taxable income (2.) is numerous, due to the duality of the criteria for determining such income(2.a), Federal Decree-Law No. 47 of 2022 provides for the deductibility of some expenses, which will have the effect of reducing taxation (2.b).

1.Scope of application of Federal Decree-law No. 47 of 2022

Although the law applies to a wide range of individuals and companies (a), its scope is not absolute, as exemptions are provided (b).



When you become the owner of a property in France, and even more so when you’re not a French tax resident, sooner or later you’re faced with the question of taxation and inheritance. This raises the question of choosing the appropriate structure to manage the rental property as a family, and there are several options, depending on the inheritance/tax angle you wish to pursue.

The choice of one option over another will depend on the objective pursued.

 What are the purposes and conditions of each structure?

 LMNP (non-professional furnished rental) let you earn additional income from real estate in a non-professional capacity.

To qualify for LMNP status, the property must be furnished, and the income generated must not exceed 23,000 euros per year, nor represent more than 50% of total income (unless you are a non-resident).

The family SARL allows you to make a profit while benefiting from lower taxes. This structure is particularly recommended if the financial risk is high, as the liability of the partners is limited to the amount of their contribution (the family SARL is first and foremost an SARL).

In addition to meeting the same requirements as a conventional SARL, it must be made up of partners who are directly related or collaterally related up to the second degree, or by marriage.

 Finally, the family SCI is recommended for the purpose of preserving and passing on assets from generation to generation.

The company’s corporate purpose must be real estate (as with traditional SCIs), and it must be made up of family members up to the fourth degree.

Let’s take a step-by-step look at the conditions, advantages, and disadvantages of these different structures, which at first glance appear similar but in reality have many differences.

What are the main advantages of these structures?


Choice of taxation method