Starting 1 July 2025, the UAE’s corporate tax regime will quietly, but significantly, expand its reach.
Not just to licensed companies.
But to friends in informal ventures, family members holding shares abroad, and foundations created to preserve generational wealth.
This is no longer just about traditional business owners. If you’re involved in shared ownership of any kind, you may now be required to register and declare income, even without a commercial license.
To help you make sense of this, we’ve unpacked the law through five real-life scenarios, many of which reflect the kinds of family setups we often see:
1. “We’re just running a business together. No license. No problem… right?”
→ You’re an Unincorporated Partnership. And yes, you need to register.
Ahmed and Omar co-manage a textile trading venture. There’s no formal company, but profits are split equally.
Tax reality:
They must register for corporate tax, submit an annual declaration, and deregister within 3 months if they close the venture.
Key date:
To benefit from special tax treatment, they must apply before 31 December 2025.
2. “We didn’t define who owns what.”
→ The FTA will assume 50/50, whether that’s accurate or not.
Lina and Huda started a kitchen together. No one documented ownership, but both are contributing unequally.
Tax consequence:
If there’s no written split, the FTA will divide income, assets, and liabilities equally, potentially exposing one partner to unexpected obligations.
Dawia tip: Draft a simple ownership agreement. This one step can prevent years of dispute or audit complications.
3. “I’m a silent partner in my family’s business abroad. Does the UAE care?”
→ If it operates like a UAE-style partnership, then yes.
Kwame lives in Dubai and holds equity in his family’s cocoa export company in Ghana.
Even though the business is based abroad, he may now be required to file an annual income declaration in the UAE, especially if his share aligns with partnership thresholds under UAE law.
4. “We created a foundation to manage our family wealth. What now?”
→ You may qualify for beneficial tax treatment—but you have to request it.
The Al Sayegh family built a private foundation to oversee long-term assets. Under the new law, this structure could be treated like a partnership if it meets eligibility criteria, and if they apply before their financial year ends.
Dawia tip:
To backdate favorable treatment, apply by 31 December 2025, and reconfirm eligibility every year.
5. “We already file taxes. Anything new?”
→ Yes. New clarity around deadlines.
For unincorporated partnerships already registered as Taxable Persons (with a TRN), the key is timing.
Deadline:
Submit your Corporate Tax Return and settle payments for any financial year that ended on or before 31 March 2025, by 31 December 2025.
So, What Should You Do?
Whether you’re running a business with friends, holding shares in a foreign venture, or managing family assets through a foundation, these changes may apply to you.
This isn’t just about filing. It’s about structuring correctly from the start.
Let’s Clarify Your Position, Before the FTA Does It for You
At Dawia Family Office, we help individuals, families, and holding entities navigate regulatory change with clarity and foresight. That includes helping you:
- Understand if you’re caught by the new rules
- Determine what needs to be registered
- Draft or revise ownership agreements
- File accurately and on time
If you’re unsure what applies, or want to make sure your setup reflects the new tax landscape, speak with our compliance team today.
Email us at data@dawiafo.com to schedule a consultation.
Because in tax, assumptions are costly.
Let’s make sure yours aren’t.