Tax Compliance for Unincorporated Partnerships & Family Foundations

The landscape of tax compliance for specific entity types in the UAE has been further defined with the issuance of Federal Tax Authority Decision No. 5 of 2025. This decision, issued on May 19, 2025, specifically addresses the tax compliance requirements for Unincorporated Partnerships, Foreign Partnerships, and Family Foundations, becoming effective on July 1, 2025. This means these entities are now operating under these new regulations.

A significant aspect of this decision pertains to Family Foundations. Those that have had an application approved under Clause 1 of Article 17 of the Corporate Tax Law are now required to submit an annual confirmation.

This confirmation, verifying that the conditions stipulated in the Corporate Tax Law have been met, must be filed within a period not exceeding nine months from the end of the relevant Tax Period.

Recognizing the transition, the decision includes an exception for earlier tax periods. For any Tax Period that ended on or before March 31, 2025, the deadline to file the annual confirmation has been set as December 31, 2025.

This provides a crucial grace period for affected entities to adjust to the new requirements. Businesses operating as partnerships or managing family foundations must be aware of these new compliance obligations and associated deadlines to ensure seamless adherence to UAE tax laws.

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Exploring Federal Tax Authority Decision No. 5 of 2025, detailing the new tax compliance obligations and deadlines for Unincorporated Partnerships, Foreign Partnerships, and Family Foundations in the UAE, effective July 2025.

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