Latest news with #TaxationofCorporationsandBusinesses
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.
Sharjah 24
06-05-2025
- Business
- Sharjah 24
Finance Ministry updates decision on audited Financial Statements
The Ministry has issued an updated Ministerial Decision clarifying the requirements for the preparation and maintenance of audited financial statements in accordance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law). The updated decision sets out clear requirements for tax groups to prepare audited financial statements. All tax groups will be required to prepare audited special purpose aggregated financial statements. However, to mitigate the compliance burden on tax groups and in line with the UAE's commitment as a business-friendly jurisdiction, the underlying members of the tax group will not be required to prepare audited stand-alone financial statements. The Federal Tax Authority (FTA) will issue further guidance on the framework for the preparation of special-purpose aggregated financial statements for Corporate Tax purposes. The new decision also clarifies procedures for Qualifying Free Zone Persons engaged in distributing goods or materials in or from a Designated Zone, for which the FTA will issue further guidance. This guidance will ensure distribution businesses are able to enjoy the benefits of the Corporate Tax Free Zone regime with certainty.
Zawya
10-03-2025
- Business
- Zawya
Federal Tax Authority launches "Family Foundations as an Unincorporated Partnership" application
Abu Dhabi: The Federal Tax Authority (FTA) has today introduced a new application via the "EmaraTax" digital tax services platform, enabling eligible Family Foundations to apply for status as an Unincorporated Partnership. Such a status is subject to the provision that the Family Foundation meets specific conditions as per Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the 'Corporate Tax Law'). In alignment with Ministerial Decision No. 261 of 2024 on Unincorporated Partnership, Foreign Partnership and Family Foundation for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Family Foundations can be treated as an Unincorporated Partnership for Corporate Tax purposes, subject to meeting conditions stipulated in the legislation. This aligns with the FTA's ongoing efforts to enhance its services in accordance with international best practices, offering comprehensive support to the business sector and facilitating smooth and accurate compliance with the Corporate Tax Law and its procedures. For Family Foundations to apply to be treated as an Unincorporated Partnership, applicants must already be registered for Corporate Tax. The FTA further clarified that an application for a "Family Foundation to be treated as an Unincorporated Partnership may be submitted by the taxpayer, their Tax Agent, or their legal representative. Once their application is approved, the Family Foundation will no longer be required to file Corporate Tax Returns. Additionally, individual beneficiaries must determine whether they are required to register for Corporate Tax and submit their respective Corporate Tax Returns for the relevant Tax Period. In order to apply, applicants must ensure they meet the specific conditions in accordance with the Corporate Tax Law and relevant legislation and decisions available on the FTA's website: About Federal Tax Authority The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperating with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority's website:
