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: https://tax.gov.ae/en/.
