UAE announces unincorporated partnerships tax decision
The decision grants unincorporated partnerships, subject to prior approval by the Federal Tax Authority, the option to be treated as a taxable person for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses.
Under the Corporate Tax Law, unincorporated partnerships are generally treated as tax transparent entities—meaning the partnership itself is not taxed, but the partners are subject to tax individually on their respective shares of the income. However, the law also provides an option for the partners to apply for the partnership to be treated as a taxable person, similar to any other legal entity.
One of the key provisions of the new decision is that, upon approval of the application by the partners, the unincorporated partnership will be regarded as a legal person and a resident person for tax purposes.
As such, it will receive the same tax treatment as other legal persons. The decision also sets out the rules for determining the taxable income of the unincorporated partnership to ensure clarity and certainty in tax compliance.
This step aims to promote tax neutrality by allowing unincorporated partnerships to benefit from the exemptions and reliefs available to legal persons under the Corporate Tax Law.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
5 hours ago
- Zawya
28,000 beneficiaries from 85 awareness activities conducted by the FTA across all UAE emirates during the first half of this year
Abu Dhabi: The Federal Tax Authority (FTA) has reaffirmed its continued efforts to enhance and diversify its awareness campaigns and communication channels to effectively reach all stakeholders involved in tax implementation. This aims to strengthen engagement with taxpayers and beneficiaries across all emirates of the UAE, while highlighting the Authority's continuously expanding range of services. The FTA stated that over the past year and the first half of the current year, several innovative campaigns, programmes, and activities have been launched to meet the tax awareness needs of the business community and various segments of Emirati society. The FTA announced that it conducted 85 awareness activities during the first half of 2025, benefiting 28,000 participants, marking a 21% increase compared to 70 activities held during the same period in 2024. The increased number of workshops aims to ensure there are no gaps in tax-related knowledge. According to the Authority, 53 virtual events were conducted in the first half of 2025, compared to 43 in the same period in 2024, while 24 in-person events were held, down slightly from 27 events during the first half of last year. The FTA confirmed that it continues to advance its plans in support of the second cycle of the Zero Government Bureaucracy Programme. These efforts are focused on enhancing digital integration with relevant authorities, continuously improving users' digital experiences. The Authority also explained that its awareness activities including its Customer Councils, which are held across all emirates focus on organising consultative sessions and dialogues with representatives from the business community and stakeholders. These sessions are designed to gather input and suggestions regarding the FTA's initiatives and projects aimed at reducing unnecessary tax procedures, eliminating repetitive or redundant requirements, enhancing government integration, promoting data sharing. Zahra Al Dahmani, Director of Taxpayer Services at the FTA, stated: 'As part of our ongoing efforts to diversify awareness tools and communication channels in line with current needs, we continue to engage the business community by incorporating their ideas and suggestions into the FTA's sustainable development plans. These efforts are aimed at maintaining the highest levels of efficiency, quality, and flexibility while simplifying and streamlining procedures.' She added: 'The FTA has launched new awareness campaigns and programmes to introduce its services and initiatives and has continued to expand its core awareness activities. Key initiatives introduced include the 'Tax Talks' workshops, which benefited 72 participants through three sessions; two workshops on 'Tax Certificates', which served 1,330 participants; six workshops on the 'EmaraTax' digital tax services platform, which attracted 2,044 participants; and two workshops on 'Tax Updates', with 1,824 participants during the first half of 2025.' Al Dahmani emphasised that the FTA's awareness efforts highlight the ongoing legislative and procedural developments in the tax system, as well as the various digital transformation projects launched by the Authority. These projects aim to accelerate service delivery, reduce paper-based processes, minimise documentation requirements, and provide more accessible and efficient services all with the goal of delivering tangible results in a short timeframe. About Federal Tax Authority: The Federal Tax Authority was established under Federal Decree-Law No. (13) of 2016 with the aim of supporting the UAE's strategy to diversify the national economy and increase non-oil revenues. The FTA is responsible for the administration and collection of federal taxes based on international best practices and standards. Since its inception in 2017, the FTA has worked in collaboration with competent authorities to build a comprehensive and balanced tax system, making the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance. The system offers streamlined procedures from registration to filing tax returns and paying due taxes through the Authority's website:
Zawya
3 days ago
- Zawya
Islamic Treasury Sukuk auction for July 2025 attracts bids worth $1.42bln
ABU DHABI: The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, announced the successful completion of the July 2025 auction of the UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED1.1 billion. This issuance forms part of the T-Sukuk issuance programme for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches maturing in August 2028 and May 2030. The total bids received reached AED5.35 billion, reflecting an oversubscription of nearly five times and underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework. The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.88% for the August 2028 tranche and 3.95% for the May 2030 tranche on par with comparable US Treasuries at the time of issuance. The Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Al Etihad
3 days ago
- Al Etihad
Islamic Treasury Sukuk auction for July 2025 attracts bids worth Dh5.35 billion
31 July 2025 19:02 ABU DHABI (WAM) The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, announced the successful completion of the July 2025 auction of the UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to Dh1.1 issuance forms part of the T-Sukuk issuance programme for the year 2025, as published on the MoF's official auction attracted robust demand from eight primary dealers across both tranches maturing in August 2028 and May 2030. The total bids received reached Dh5.35 billion, reflecting an oversubscription of nearly five times and underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.88% for the August 2028 tranche and 3.95% for the May 2030 tranche, on par with comparable US Treasuries at the time of Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
