The United Arab Emirates (UAE) has introduced new administrative and tax relief measures aimed at supporting local businesses, foreign partnerships, and family foundations.
Under the new rules issued by the Ministry of Finance, unincorporated partnerships are no longer required to notify the Federal Tax Authority (FTA) within 20 business days about changes in their partnership structure, such as adding or removing partners.
Additionally, foreign partnerships will be considered "tax transparent" in the UAE if they hold that status in their home country. This eliminates the need for individual partners to separately confirm their tax status with the FTA.
For family foundations, the updated decision allows a legal entity within such foundations to apply for "tax transparent" status. This change provides family foundations managing assets in the UAE with enhanced tax benefits and aligns their advantages with the UAE’s corporate tax regulations.
Younis Haji AlKhoori, Undersecretary at the Ministry of Finance, stated, “This revision demonstrates the UAE’s flexible corporate tax regime, which offers clarity to taxpayers and strengthens confidence in the UAE's competitive business environment.” He added that the strategy aims to ease compliance burdens for taxpayers and further solidify the UAE’s position as a leading global business and investment hub.
