The Federal Tax Authority (FTA) introduced a new application via the “EmaraTax” digital tax services platform, enabling eligible Family Foundations to apply for status as an Unincorporated Partnership, provided the Family Foundation met specific conditions as per Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), as well as Ministerial Decision No. 261 of 2024 on Unincorporated Partnership, Foreign Partnership, and Family Foundation for the purposes of the Corporate Tax Law.

This announcement was made by the UAE Federal Tax Authority on 10 March 2025.

Family Foundations were able to apply to the FTA to be treated as an Unincorporated Partnership for Corporate Tax purposes, subject to meeting the stipulated conditions in the legislation. This move aligned with the FTA’s ongoing efforts to enhance its services in accordance with international best practices, offering comprehensive support to the business sector and facilitating smooth and accurate compliance with the Corporate Tax Law and its procedures.

To be treated as an Unincorporated Partnership, applicants were required to register for Corporate Tax. The FTA clarified that the application for a Family Foundation to be treated as an Unincorporated Partnership could be submitted by the taxpayer, their Tax Agent, or their legal representative. Once approved, the Family Foundation was no longer required to file Corporate Tax Returns.

Additionally, individual beneficiaries were required to determine whether they needed to register for Corporate Tax and submit their respective Corporate Tax Returns for the relevant Tax Period.

To apply, applicants had to ensure they met the specific conditions in accordance with the Corporate Tax Law and the relevant legislation and decisions available on the FTA’s website: https://tax.gov.ae/en/.