Latest news with #UAEMinistryofFinance
Hi Dubai
6 days ago
- Business
- Hi Dubai
Ministry of Finance Strengthens Government Financial Reporting with IMF Workshop
The UAE Ministry of Finance partnered with the International Monetary Fund (IMF) to host a specialised four-day workshop in Dubai focused on preparing the government balance sheet according to the GFSM 2014 guidelines. This initiative brought together key government bodies, including the Central Bank, Federal Competitiveness and Statistics Centre, and financial departments across the country. IMF experts led the sessions aimed at enhancing the technical skills of government staff to accurately collect, process, and publish government financial data. The workshop also fostered greater coordination among authorities to improve data quality, transparency, and competitiveness at regional and international levels. Saeed Rashid Al Yateem, Assistant Undersecretary for Government Budget and Revenue Sector, emphasised that the workshop reflects the UAE's ongoing commitment to advancing public financial statistics by adopting global standards and providing specialised training for government entities. He described the balance sheet as a critical tool for decision-makers, offering a clear view of government assets and liabilities to support effective resource allocation and financial planning. The training covered key topics including the theoretical framework of government financial statistics, balance sheet components, and methodologies for compiling balance sheet reports. Discussions also included reviewing data sources, institutional and technical improvements, and developing a national roadmap for phased implementation. IMF officials praised the active engagement from UAE participants and highlighted the importance of such initiatives in accelerating progress toward international-standard financial reporting. These efforts align with the UAE's "We the UAE 2031" vision to enhance transparency and leadership in government financial governance. News Source: Emirates News Agency
Hi Dubai
6 days ago
- 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
7 days ago
- 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.
Hi Dubai
23-05-2025
- Business
- Hi Dubai
Ministry of Finance Completes AED1.1 Billion Islamic T-Sukuk Auction with Strong Investor Demand
The UAE Ministry of Finance has successfully concluded its May 2025 auction of Islamic Treasury Sukuk (T-Sukuk), raising AED1.1 billion amid overwhelming investor interest and robust demand. Conducted in coordination with the Central Bank of the UAE, the auction attracted total bids worth AED6.93 billion from eight primary dealers, reflecting an oversubscription rate of 6.3 times. The offering included a re-opening of the May 2027 tranche and a newly issued 5-year tranche maturing in May 2030. Yields remained competitive, with the May 2027 tranche recording a Yield to Maturity (YTM) of 3.99%, while the May 2030 tranche closed at 4.06%. Both yields were closely aligned with U.S. Treasury benchmarks, demonstrating strong market confidence in the UAE's fiscal strength and Islamic finance infrastructure. This issuance forms part of the Ministry's broader 2025 T-Sukuk programme, aimed at developing a dirham-denominated yield curve and providing secure investment options for institutional investors. Officials highlighted that the success of the auction supports not only the UAE's domestic debt market but also reinforces the country's long-term economic sustainability goals. News Source: Emirates News Agency
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
