Latest news with #CorporateTaxLaw
Hi Dubai
5 days ago
- Business
- Hi Dubai
Federal Tax Authority Holds Dubai Workshop to Boost Corporate Tax Compliance
The Federal Tax Authority (FTA) hosted a high-attendance workshop in Dubai today as part of its national campaign to boost awareness and compliance with the UAE's Corporate Tax Law. Nearly 940 representatives from businesses, government entities and key stakeholders participated in the session titled 'Rules for Determining Income Subject to Corporate Tax' . The workshop focused on the general principles of corporate tax, clarifying how income is determined, reported, and taxed under the law that came into effect two years ago. The event is part of a broader initiative by the FTA to promote voluntary compliance and ensure that taxpayers are well-informed about their obligations. Six more in-person workshops are scheduled across the country before the end of 2025, alongside a range of virtual and physical sessions covering all seven emirates. The FTA also reiterated its call for eligible businesses and exempt persons required to register to submit their corporate tax returns within seven months from the end of their first tax period. Doing so would allow them to benefit from the UAE Cabinet Decision that waives administrative penalties for late registrations, provided submissions are made within the specified legal window. Topics discussed included accounting standards, accrual-based income recognition, and definitions of financial elements in line with IFRS. Attendees also received guidance on registration procedures via the EmaraTax platform and criteria for determining taxable persons, applicable rates, and filing deadlines. The FTA confirmed that the campaign, launched in phases since 2024, aims to simplify access to tax information, enhance clarity, and support the business community in complying efficiently with the corporate tax framework. News Source: Emirates News Agency
Hi Dubai
26-05-2025
- Business
- Hi Dubai
Ministry of Finance Allows Unincorporated Partnerships to Opt for Corporate Tax Treatment
The UAE Ministry of Finance has issued a new Cabinet Decision that permits unincorporated partnerships to be treated as taxable persons under the country's Corporate Tax Law, marking a significant step toward enhancing tax transparency and improving the business environment. Traditionally, unincorporated partnerships in the UAE have been treated as tax transparent entities. This means the partnership itself is not taxed; instead, partners pay tax individually on their shares of income. The recent decision now allows these partnerships, with prior approval from the Federal Tax Authority, to opt for tax treatment similar to registered legal entities. Once approved, an unincorporated partnership will be recognized as a legal and resident person for tax purposes. This change aligns its tax status with other corporate entities, allowing it to benefit from the full range of exemptions and reliefs provided under Federal Decree-Law No. (47) of 2022, which governs corporate taxation. The Cabinet Decision also clarifies how taxable income for these partnerships will be calculated, providing greater certainty and clarity for tax compliance. By offering unincorporated partnerships the choice to be treated as taxable persons, the UAE aims to promote tax neutrality and streamline the tax framework, supporting business growth and compliance in the evolving economic landscape. News Source: Emirates News Agency
Gulf Insider
24-05-2025
- Business
- Gulf Insider
UAE Announces New Corporate Tax Rule for Partnerships
The move is part of the government's ongoing efforts to enhance tax transparency and improve the business environment. Under the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, unincorporated partnerships are generally regarded as tax transparent entities. UAE Ministry of Finance issues Cabinet decision on partnership tax treatment This means that the partnership itself is not subject to corporate tax, but the partners are taxed individually on their respective shares of the partnership's 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,' according to a stant by the Emirates News Agency (WAM) citing the Ministry's announcement. The new Cabinet Decision grants unincorporated partnerships the option, subject to prior approval by the Federal Tax Authority (FTA), to be recognised as a taxable person. '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,' the statement added. This change means the partnership will receive the same tax treatment as other legal persons under the law. The Decision outlines the rules for determining the taxable income of unincorporated partnerships to ensure clarity and certainty in tax compliance. According to the Ministry, this step aims to promote tax neutrality. It allows unincorporated partnerships to access exemptions and reliefs available to legal persons under the Corporate Tax Law. The decision is expected to help streamline the taxation framework for partnerships that choose to be taxed as a single entity, rather than having their partners taxed individually.
Dubai Eye
24-05-2025
- Business
- Dubai Eye
UAE announces unincorporated partnerships tax decision
As part of its ongoing efforts to enhance tax transparency and improve the business environment in the UAE, the Ministry of Finance has announced the issuance of a Cabinet Decision regarding the tax treatment of unincorporated partnerships. 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.
Al Etihad
24-05-2025
- Business
- Al Etihad
Ministry of Finance announces cabinet decision on tax treatment of unincorporated partnerships
24 May 2025 14:39 ABU DHABI (WAM)As part of its ongoing efforts to enhance tax transparency and improve the business environment in the UAE, the Ministry of Finance has announced the issuance of a Cabinet Decision regarding the tax treatment of unincorporated 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 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 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 such, it will receive the same tax treatment as other legal 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.
