The UAE’s Ministry of Finance has introduced new tax relief and administrative measures aimed at simplifying compliance for local businesses, foreign partnerships, and family foundations. Key highlights include:
- Simplified Compliance: Domestic partnerships no longer need to notify the Federal Tax Authority (FTA) of changes in partnership structure within a strict 20-day period.
- Tax Transparency for Foreign Partnerships: Partnerships recognized as tax-transparent in their home countries will be treated similarly in the UAE, reducing administrative hurdles.
- Benefits for Family Foundations: Family foundations managing assets can apply for tax-transparent status, offering financial and legal advantages under corporate tax regulations
Impact on Businesses
These measures aim to:
- Ease Administrative Burdens: Simplifying tax processes reduces costs and time for businesses, allowing them to focus more on growth.
- Attract Foreign Investment: The reforms enhance the UAE’s appeal as a global business hub, promoting partnerships and investment inflows.
- Support Family-Owned Enterprises: Legal and tax clarity for family foundations helps sustain long-term business operations and wealth management
