Abu Dhabi: The Ministry of Finance (MoF) has announced significant amendments to Ministerial Decision Nos. (261) of 2024 concerning Unincorporated Partnerships, Foreign Partnerships, and Family Foundations. These changes are made in accordance with Federal Decree-Law No. 47 of 2022, which pertains to the Taxation of Corporations and Businesses and its subsequent amendments. According to Emirates News Agency, the revised Ministerial Decision is set to apply for tax periods starting on or after June 1, 2023. It introduces several administrative and tax relief measures aimed at benefiting domestic businesses, foreign partnerships, and family foundations. One of the key updates is the reduction in compliance requirements for unincorporated partnerships. The obligation to notify the Federal Tax Authority (FTA) within 20 business days of any changes in partnership composition, such as the addition or departure of partners, has been eliminated. Furthermore, the decision clarifies the tax treatment of foreign part nerships in the UAE. If these partnerships are considered tax transparent in their home jurisdiction, they will receive the same treatment in the UAE. This change removes the necessity for individual partners to verify their tax status with the FTA separately. Additionally, the decision grants family foundations the ability to apply for tax transparent status through a juridical person. This provision is designed to enhance tax advantages for family foundations holding assets within the UAE, aligning their benefits with the UAE Corporate Tax framework. Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, stated that the amendments demonstrate the flexibility of the UAE's Corporate Tax regime. He emphasized that the changes aim to provide certainty to taxable persons, ease compliance burdens on taxpayers, and reinforce the UAE's position as a leading global hub for business and investment.
