Comparing Tax Treatment of Incorporated and Unincorporated Partnerships in UAEPosted by Dr. Hassan Elhais on June 20th, 2024 ![]() Introduction:Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) was implemented on 3 October 2022. Under UAE corporate tax laws, partnerships can be classified as either incorporated or unincorporated, each with its own set of tax implications. Understanding the differences between these two types of partnerships is crucial for navigating the corporate tax landscape in the UAE. In this article, we'll explore the treatment of incorporated partnerships compared to unincorporated partnerships under UAE corporate tax laws. Incorporated Partnerships: Incorporated partnerships refer to those that have a separate legal personality distinct from their partners. In the UAE, this typically includes entities such as limited liability companies (LLCs) and joint-stock companies. Here's how incorporated partnerships are treated under UAE corporate tax laws:
Unincorporated Partnerships: Unincorporated partnerships, on the other hand, do not have a separate legal personality from their partners. Unincorporated partnerships, include general partnerships and limited partnerships. Here's how they are treated under UAE corporate tax laws:
Conclusion:The treatment of incorporated partnerships and unincorporated partnerships under UAE corporate tax laws differs primarily in terms of their legal status, taxation, and compliance requirements. Understanding these distinctions is essential for partners and businesses operating within the UAE to ensure compliance with applicable tax regulations and enhance their tax position. Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided. Author
Like it? Share it!More by this author |