The UAE’s Federal Tax Authority has launched a new feature on its EmaraTax digital platform, allowing Family Foundations to apply for treatment as Unincorporated Partnerships under the country’s corporate tax regime.
The update follows Ministerial Decision No. 261 of 2024, which enables Family Foundations to seek Unincorporated Partnership status for tax purposes, subject to conditions outlined in Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
According to the FTA, eligible applicants must already be registered for corporate tax. “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,” the authority said in a statement.
Once approved, the Family Foundation will not be required to file corporate tax returns. Instead, individual beneficiaries must assess their own corporate tax obligations and, if applicable, register and file their returns for the relevant tax period.
The move is part of the FTA’s broader strategy to streamline compliance and provide clarity for taxpayers under the new corporate tax regime, which took effect in June 2023. The authority said the new application service is designed to align with international best practices and support the smooth implementation of the UAE’s evolving tax framework.
The EmaraTax platform, launched in late 2022, is the UAE’s centralised system for managing tax registration, filing and payments, and has been periodically updated to accommodate corporate tax functions introduced under the new legislation.
Family Foundations opting for Unincorporated Partnership status must ensure compliance with all relevant conditions listed in the Corporate Tax Law, ministerial decisions and guidance published by the FTA on its official website.
