The Federal Tax Authority (FTA) has launched a new application through its “EmaraTax” digital tax services platform. This application allows eligible Family Foundations to apply for recognition as an Unincorporated Partnership, provided they meet specific conditions outlined in Federal Decree-Law No. 47 of 2022, which pertains to the Taxation of Corporations and Businesses.

According to Ministerial Decision No. 261 of 2024, Family Foundations can be classified as Unincorporated Partnerships for Corporate Tax purposes, contingent on meeting the legislative requirements. This initiative is part of the FTA’s efforts to improve its services and ensure compliance with international best practices, assisting the business sector in adhering to the Corporate Tax Law and its associated procedures.

To apply for this status, Family Foundations must already be registered for Corporate Tax. The FTA clarified that the application can be submitted by the taxpayer, their Tax Agent, or their legal representative. Once approved, the Family Foundation will no longer need to file Corporate Tax Returns. However, individual beneficiaries must assess whether they need to register for Corporate Tax and file their own returns for the applicable Tax Period.

Applicants are required to comply with specific conditions in accordance with the Corporate Tax Law and relevant legislation, which can be found on the FTA’s website: https://tax.gov.ae/en/.