emirates7 - The Federal Tax Authority (FTA) recently held a workshop in Abu Dhabi to clarify Corporate Tax regulations concerning Family Foundations and outline the requirements for recognising an entity as a Family Foundation under Federal Decree-Law No. 47 of 2022 on Corporate Taxation.
This session forms part of the FTA’s wider efforts to educate various sectors of the UAE business community about Corporate Tax, aiming to facilitate a smooth transition and promote voluntary compliance.
The event drew significant interest, with 290 participants from the Family Foundations sector and representatives from both public and private organisations.
During the workshop, the FTA reiterated its call for taxpayers who have yet to register for Corporate Tax to submit their applications promptly. This would allow them to take advantage of an exemption initiative that waives administrative penalties for delayed registration, provided specific conditions are met.
To qualify for this exemption, taxpayers must file their Tax Return—or annual declaration—within seven months of the end of their initial Tax Period. This condition applies only to the first Tax Period, regardless of whether its due date falls before or after the new decision’s implementation.
The workshop covered several key issues related to the treatment of Family Foundations under the Corporate Tax Law. FTA officials clarified the legal definition of a Family Foundation and its tax implications.
Earlier this year, the FTA introduced a new feature through the EmaraTax platform, allowing eligible Family Foundations to apply for treatment as Unincorporated Partnerships, in line with Corporate Tax Law and Ministerial Decision No. 261 of 2024. This option is available to those who meet the specified legal criteria.
The FTA emphasized that Family Foundations wishing to apply for Unincorporated Partnership status must first be registered for Corporate Tax. The application can be submitted by the taxpayer, their tax agent, or legal representative. Once approved, the Family Foundation would be exempt from filing annual Corporate Tax Returns.
However, individual beneficiaries of such Family Foundations must assess their own Corporate Tax obligations and determine if they need to register and file a Tax Return for the relevant Tax Period.
This session forms part of the FTA’s wider efforts to educate various sectors of the UAE business community about Corporate Tax, aiming to facilitate a smooth transition and promote voluntary compliance.
The event drew significant interest, with 290 participants from the Family Foundations sector and representatives from both public and private organisations.
During the workshop, the FTA reiterated its call for taxpayers who have yet to register for Corporate Tax to submit their applications promptly. This would allow them to take advantage of an exemption initiative that waives administrative penalties for delayed registration, provided specific conditions are met.
To qualify for this exemption, taxpayers must file their Tax Return—or annual declaration—within seven months of the end of their initial Tax Period. This condition applies only to the first Tax Period, regardless of whether its due date falls before or after the new decision’s implementation.
The workshop covered several key issues related to the treatment of Family Foundations under the Corporate Tax Law. FTA officials clarified the legal definition of a Family Foundation and its tax implications.
Earlier this year, the FTA introduced a new feature through the EmaraTax platform, allowing eligible Family Foundations to apply for treatment as Unincorporated Partnerships, in line with Corporate Tax Law and Ministerial Decision No. 261 of 2024. This option is available to those who meet the specified legal criteria.
The FTA emphasized that Family Foundations wishing to apply for Unincorporated Partnership status must first be registered for Corporate Tax. The application can be submitted by the taxpayer, their tax agent, or legal representative. Once approved, the Family Foundation would be exempt from filing annual Corporate Tax Returns.
However, individual beneficiaries of such Family Foundations must assess their own Corporate Tax obligations and determine if they need to register and file a Tax Return for the relevant Tax Period.