| FTA Issues New Decision clarifying compliance requirements for Unincorporated Partnerships, Foreign Partnerships & Family Foundations |
On 19 May 2025, the UAE Federal Tax Authority (FTA) issued Decision No. 5 of 2025, outlining new compliance requirements for:
- Unincorporated Partnerships
- Foreign Partnerships
- Family Foundations
This decision clarifies how these entities should handle corporate tax registration, declarations, tax filing, and other compliances.
| Requirement for Unincorporated Partnerships |
Deadline |
Comments |
| Corporate Tax Registration Application |
- Unincorporated Partnerships are not treated as taxable persons in their own rights, and are required to appoint one of the partners to act as an authorised partner.
- Such authorised partners are required to submit application for registering the Unincorporated Partnership.
|
| First financial year ending before 1 July 2025 |
31 August 2025 |
| First financial year ending after 1 July 2025 |
Within 3 months from the end of the financial year |
| Annual Declaration Filing |
- To be filed by an authorised partner.
- Breakdown of income, assets, liabilities and expense allocations to partners.
- If profit-sharing arrangement is not defined/unclear, income, expense, asset and liability are to be divided equally.
- A UAE-based partner (who is a taxable person) in a Foreign Partnership must file an annual declaration on behalf of the partnership when submitting their own tax return.
|
| For financial year ending on or before 31 March 2025 |
31 December 2025 |
| For others |
Within 9 months from the end of the financial year |
| Tax De-registration Application |
Within 3 months from the date of cessation of the Business or Business Activity |
Reason could be due to a dissolution or termination of the business, or any other valid reasons.
|
| Application to be elected as a Taxable Person |
Optional application
|
| Any Tax Period ending on or before 31 December 2025 |
On or before 31 December 2025 |
| For others |
Before end of the financial year |
| Tax Return Filing and Corporate Tax payment
for periods ending on or before 31 March 2025
|
31 December 2025 |
- Only for Unincorporated Partnerships that are to be treated as Taxable Persons.
- For subsequent periods, the standard timeline of 9 months from the end of financial year would apply after 31 March 2025
|
The decision provides additional clarity, stating that a Family Foundation seeking to be treated as an Unincorporated Partnership must submit both application and a declaration within below timelines:
| Requirement for Family Foundations |
Deadline |
Comments |
| Application to be Treated as Unincorporated Partnership |
Applications can be made for future tax periods
|
| Any Tax Period ending on or before 31 December 2025 |
On or before 31 December 2025 |
| For others |
Before financial year end |
| Annual Confirmation Filing |
|
| For Tax Period ending on or before 31 March 2025 |
31 December 2025 |
| For others |
Within 9 months from end of the financial year |
|
Our Comments
This decision is effective from 1 July 2025 and applies to tax periods as specified. This decision provides a much-needed clarity on various timelines, including the extension of certain timelines. Extension of timelines for making application for Family Foundation for earlier period is a welcome move and provides much needed relief to Foundations which were unable to make an application earlier. Taxpayers in UAE must note this decision and start acting immediately on Unincorporated Partnerships where last date to file registration is 31 August 2025.
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