Abu Dhabi: 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/.

About Federal Tax Authority

The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperating with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae.