Latest news with #FederalDecree-LawNo.
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
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.
Mid East Info
21-05-2025
- Business
- Mid East Info
Ministry of Finance Announces Issuance of Cabinet Decision Expanding the Scope of Corporate Tax Exemption - Middle East Business News and Information
The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025 on Exempting Certain Persons from Corporate Tax for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities —such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant conditions. Prior to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities (such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds), or even if they operated through branches in the UAE, were not eligible for exemption. The extension of the exemption to include such incorporated foreign entities—provided their activities meet the relevant conditions—aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices.
Hi Dubai
21-05-2025
- Business
- Hi Dubai
Ministry of Finance Expands Corporate Tax Exemptions to Foreign-Owned Entities
The UAE Ministry of Finance has issued a new decision expanding corporate tax exemptions to certain foreign-owned entities, aligning the nation's tax framework more closely with global standards. Under Cabinet Decision No. (55) of 2025, foreign entities that are wholly owned by specific exempt persons — including government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds — can now qualify for corporate tax exemption, provided they meet the prescribed conditions. Previously, exemptions under Federal Decree-Law No. (47) of 2022 were limited to entities incorporated within the UAE. Foreign entities, even those fully owned by exempt bodies or operating through UAE branches, were excluded from the tax break. The Ministry stated that the updated policy ensures consistent tax treatment between domestic and foreign entities under common ownership by exempt persons. This change aims to enhance the UAE's appeal as a base for holding companies and supports its broader goal of maintaining a fair, transparent, and competitive tax regime. The decision is part of the UAE's continued efforts to align with international tax standards while supporting investment-friendly policies that strengthen its global economic position. News Source: Emirates News Agency
