- UAE announces new tax relief and administrative measures.
- UAE introduces new tax relief and administrative measures to support local businesses, foreign partnerships, and family foundations.
- The strategy specifically aims to reduce compliance challenges for taxpayers.
The United Arab Emirates (UAE) has announced new tax relief and administrative measures aimed at supporting local businesses, foreign partnerships, and family foundations. The Ministry of Finance has implemented several revisions to simplify tax compliance.
Under the updated rules, unincorporated partnerships are no longer required to notify the Federal Tax Authority (FTA) about changes in their partnership structure, such as the addition or departure of partners, within 20 business days.
Additionally, foreign partnerships will be considered 'tax transparent' in the UAE if they hold the same status in their home country. This eliminates the need for individual partners to confirm their tax status with the FTA.
Family foundations also benefit from the new changes, as they now have the option to request a 'tax transparent' status for legal entities within the foundation. This move offers greater tax advantages for family foundations managing assets in the UAE, in line with the country’s corporate tax regulations.
Younis Haji AlKhoori, Undersecretary at the Ministry of Finance, highlighted that these changes reflect the flexibility of the UAE’s corporate tax system, aiming to reduce compliance burdens and bolster the country’s reputation as a leading global business hub. The new measures are part of the UAE's broader strategy to maintain a competitive and investor-friendly environment.
