Today's Edition
ABU DHABI (ALETIHAD)
The Ministry of Finance (MoF) has announced amendments to Ministerial Decision Nos. (261) of 2024 on Unincorporated Partnerships, Foreign Partnerships and Family Foundations for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments.
The revised Ministerial decision shall apply for tax periods commencing on or after 1 June 2023 and introduces a series of administrative and tax relief measures for domestic businesses, foreign partnerships, and family foundations.
The updated Ministerial Decision primarily reduces compliance requirements for unincorporated partnerships by eliminating the obligation to notify the Federal Tax Authority (FTA) within 20 business days of any changes to partnership composition, such as new partners joining or existing partners departing.
Additionally, it clarifies that foreign partnerships will be treated as tax transparent in the UAE if they are treated as such in their home jurisdiction, thus removing the need for individual partners to separately verify their tax status to the FTA.
Moreover, the Decision grants a juridical person within a family foundation the option to apply for tax transparent status. This measure enhances tax advantages for Family Foundations holding assets within the UAE, aligning family foundation benefits with the UAE Corporate Tax framework.
Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, said, “The amendment to this decision reflects the UAE's Corporate Tax regime flexibility to provide certainty to taxable persons and sustain confidence in the UAE's competitive business environment. Specifically, this approach aims to ease compliance burdens on taxpayers and to reinforce the UAE’s position as a leading global hub for business and investment”.
