Ministry of Finance Announces Amendments to Ministerial Decision Regarding Unincorporated Partnerships, Foreign Partnerships, and Family Foundations

The Ministry of Finance has announced amendments to Ministerial Decision Nos. (261) of 2024 connected Unincorporated Partnerships, Foreign Partnerships and Family Foundations for the purposes of Federal Decree-Law No. 47 of 2022 connected the Taxation of Corporations and Businesses and its amendments.

The revised Ministerial determination shall use for taxation periods commencing connected oregon aft 1 June 2023 and introduces a bid of administrative and taxation alleviation measures for home businesses, overseas partnerships, and household foundations.

The updated Ministerial Decision chiefly reduces compliance requirements for unincorporated      partnerships by eliminating the work to notify the Federal Tax Authority (FTA) wrong 20 concern days of immoderate changes to concern composition, specified arsenic caller partners joining oregon existing partners departing. Additionally, it clarifies that overseas partnerships volition beryllium treated arsenic taxation transparent successful the UAE if they are treated arsenic specified successful their location jurisdiction, frankincense removing the request for idiosyncratic partners to separately verify their taxation presumption to the FTA.

Moreover, the Decision grants a juridical idiosyncratic wrong a household instauration the enactment to use for taxation transparent status. This measurement enhances taxation advantages for Family Foundations holding assets wrong the UAE, aligning household instauration benefits with the UAE Corporate Tax framework.

H.E. Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, said: “The amendment to this      determination reflects the UAE's Corporate Tax authorities flexibility to supply certainty to taxable persons and prolong assurance successful the UAE's competitory concern environment. Specifically, this attack aims to easiness compliance burdens connected taxpayers and to reenforce the UAE’s presumption arsenic a starring planetary hub for concern and investment”.

All Cabinet Decisions and Ministerial Decisions relating to the Corporate Tax Law are disposable connected the Ministry of Finance’s website: https://uaelegislation.gov.ae/en. 

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