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 |
|
|
| 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 |
|
|
| 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 |
|
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. |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
