UAE: New application for treatment of family foundations as unincorporated partnerships; guidance on requests for extended deadline for tax assessment review or reconsideration
New application effective March 10, 2025; guidance on deadline extension requests effective March 1, 2025.
The Federal Tax Authority (FTA) on March 10, 2025, introduced a new application via the EmaraTax platform for eligible family foundations to apply for treatment as unincorporated partnerships, effective March 10, 2025. Upon approval, family foundations would be exempt from filing corporate tax returns, shifting the responsibility to individual beneficiaries. Eligibility criteria are detailed in Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 261 of 2024.
The FTA also clarified conditions for requests to extend the deadline for tax assessment review or reconsideration, effective March 1, 2025. Extensions may be granted for serious illness, death, business disruptions, record destruction, system malfunctions, or force majeure. Extensions will not be granted for taxpayer unawareness, third-party negligence, complexity of requests, or business preoccupation.
For more information, contact a KPMG tax professional in the UAE:
Koen Desloover | kdesloover@kpmg.com