FTA Decision No. 5 of 2025: Key Deadlines Every Business Should Remember
As part of the ongoing UAE Corporate Tax regime implementation, the Federal Tax Authority (FTA) has released Decision No. 5 of 2025, outlining tax compliance requirements for Unincorporated Partnerships, Foreign Partnerships, and Family Foundations. If you’re running a business that falls under these categories, it’s crucial to understand the new filing and registration deadlines to avoid unnecessary penalties and stay compliant. As one of the top accounting firms in Dubai, TFAB breaks down the most important dates and compliance checkpoints from this decision, effective July 1, 2025.
Tax Registration Deadlines
Who it affects: Unincorporated Partnerships not treated as taxable persons.
- If your first financial year ended before July 1, 2025: Registration must be completed by August 31, 2025
- If your first financial year ends after July 1, 2025: Apply within 3 months of the financial year-end
Annual Declaration Filing
- Required for Unincorporated Partnerships not treated as taxable entities
- Must be submitted within 9 months from the end of the financial year
- Exception: For any financial year ending on or before March 31, 2025, the deadline is December 31, 2025
This declaration is essential to determine the taxable income for individual partners. TFAB’s internal audit services in the UAE can help ensure all required data is accurately compiled and submitted.
Distributive Share Allocation
- If a partnership does not have a clear agreement on income distribution, the FTA will assume equal distribution among partners.
- It’s vital to maintain proper documentation and clear agreements to avoid tax disputes.
Tax Deregistration
If your partnership dissolves or ceases business activity: You must apply for tax deregistration within 3 months of cessation. Failure to do so may result in penalties. Let TFAB help with seamless tax exit processes under our expert VAT services in Dubai.
Optional Taxable Person Election
- Partnerships may apply to be treated as taxable persons voluntarily
- Deadline to apply for retroactive treatment (effective from any period ending on or before December 31, 2025) Submit before December 31, 2025
Corporate Tax Filing & Payment
For Unincorporated Partnerships recognized as taxable persons: Deadline to file the tax return and settle corporate tax for tax periods ending before March 31, 2025, is December 31, 2025
Family Foundations as Unincorporated Partnerships
- Applications must be submitted before the end of the relevant tax period
- Exceptionally, applications made on or before December 31, 2025, can be applied retroactively
- Annual confirmation of eligibility also due within 9 months of the tax period end, or by December 31, 2025 for early years
These deadlines mark a significant shift in how unincorporated entities are taxed in the UAE. Missing them can lead to hefty penalties, increased audit scrutiny, and tax liabilities. As a leading name among auditing & accounting firms in Dubai, TFAB is here to guide you through each step of the compliance process. Whether you need accounting and bookkeeping services, expert VAT services, or full internal audits, we ensure your business stays ahead of every tax update.
Need Help?
Get in touch with our experts at TFAB – one of the top accounting firms in Dubai – to ensure full compliance with the FTA Decision No. 5 of 2025.