Dubai: Administrative and tax relief measures have been issued for domestic businesses in the UAE as well as for foreign partnerships and family foundations.
Under the new Ministry of Finance rules, the compliance requirements for unincorporated partnerships will no longer require notifying the Federal Tax Authority (FTA) within 20 business days of any changes to partnership composition. This relates to new partners joining or existing partners departing.
Also, foreign partnerships will be treated as ‘tax transparent’ in the UAE if they are treated as such in their home jurisdiction, said the Ministry of Finance. This removes the need for individual partners to separately verify their tax status to the FTA.
Family foundation
Also, the decision grants a juridical person within a family foundation the option to apply for a 'tax transparent' status. This 'enhances tax advantages for family foundations holding assets within the UAE, aligning family foundation benefits with the UAE corporate tax framework', said a statement.
"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," said Younis Haji AlKhoori, Undersecretary at the Ministry of Finance. "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.”
