Legal Update ยท Foundations
Family Foundations and Corporate Tax 2026: governance becomes visible.
The 2026 FTA guidance on Family Foundations highlights the need for consistent governance, beneficiary logic, activity review and ongoing documentation.
Core point
A foundation, trust or similar entity may require a tax analysis that differs from an operating company. Beneficiaries, principal activity, lack of business activity, anti-avoidance and annual confirmations should be reviewed.
Before setup
- Who controls the council, guardian, protector or comparable roles?
- Who are the beneficiaries and what rights do they have?
- Is the structure passive, or does it conduct activity that may trigger licensing or business questions?
- Do UAE documents fit the tax treatment in the residence state of the persons involved?