The UAE’s Ministry of Finance announced Monday that it there would be 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 new 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, according to a press release.
“The amendment to this decision reflects the UAE’s Corporate Tax regime flexibility to provide certainty to taxable persons and sustain confidence in the country’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,” Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, said in the statement.
The revised decision applies 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 decision also 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,” the press release read.
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