UAE, 26 May, 2025 : The UAE Ministry of Finance has announced that unincorporated partnerships can now apply to be taxed as legal entities, similar to companies, under a new Cabinet Decision. With Federal Tax Authority (FTA) approval, these partnerships will be treated as “legal persons” for tax purposes and taxed directly—making them eligible for corporate tax exemptions and reliefs.
By default, partnerships are tax-transparent, meaning partners are taxed individually on their income shares. However, the new option allows businesses more flexibility, potentially easing compliance and offering access to corporate tax benefits.
This move supports the UAE’s goals of boosting tax transparency, simplifying business operations, and maintaining a competitive market. Approval from the FTA is required to adopt this new tax status.
Source : gulfnews.comRelated Posts

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