Legislation Details
- Full Title: Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses
- Law Type: Federal Decree-Law
- Law Number: No. (63) of 2025
- Issued Date: 14 May 2025
- Effective Date: 01 Jun 2023
- Official Gazette: No. 800
- Sector: Tax
- Status: Active
- Number of Articles: 7
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes that unincorporated partnerships in the UAE can be treated as taxable persons in their own right for the purposes of the Federal Decree-Law on Taxation of Corporations and Businesses. This allows unincorporated partnerships to be directly liable for corporate tax, rather than having the tax obligations fall solely on the individual partners. This change is significant for businesses operating in the UAE through unincorporated partnership structures, as it clarifies their tax obligations and treatment under UAE law. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to specify that unincorporated partnerships in the UAE can be treated as taxable persons in their own right for the purposes of the Federal Decree-Law on Taxation of Corporations and Businesses. This means that unincorporated partnerships can be directly liable for corporate tax, rather than having the tax obligations fall solely on the individual partners. The Resolution applies to all unincorporated partnerships operating in the UAE. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025, Art. 2)
What are the key definitions under this law?
The key definition provided in this Resolution is:
- Unincorporated Partnership: This term is defined according to the definitions set out in the Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025, Art. 1)
What are the main obligations and requirements?
The main obligation established by this Resolution is that where the Federal Tax Authority approves an application by the partners of an unincorporated partnership to be treated as a taxable person in its own right, the unincorporated partnership shall be considered a legal resident person for the purposes of the Federal Decree-Law on Taxation of Corporations and Businesses. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025, Art. 2)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to and issued pursuant to the Federal Decree-Law No. (47) of 2022 Regarding Taxation of Corporations and Businesses. The Resolution specifies the treatment of unincorporated partnerships under that Corporate Tax Law. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025)
When did this law come into effect?
This Cabinet Resolution shall enter into force as of June 1, 2023. (Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses, 2025, Art. 3)
Source Documents
This article analyses Cabinet Resolution Regarding Unincorporated Partnership Treated as Taxable Person in their Own Right for the Purposes of Federal Decree by Law Regarding Taxation and Corporations and Businesses for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.