Unincorporated Partnership | Bericht Audit & Advisory

Optional: Electing to Treat the Partnership as a Taxable Entity (“Fiscally Opaque”)

● Under a recent regulatory update, partners of an unincorporated partnership now have the option (subject to approval by the Federal Tax Authority, FTA) to have the partnership recognized as a Taxable Person in its own right.
● If approved:
● The partnership becomes a resident juridical person for CT purposes, taxed like a company.
● It computes its own taxable income, pays CT on business profits, handles deductions, losses, foreign tax credits, etc.
● Partners remain jointly and severally liable for any CT the partnership owes (i.e. liability doesn’t vanish).
● Once the election is made and approved, it is generally irrevocable (barring exceptional circumstances).
● This election may be useful if you want the partnership to access certain reliefs/exemptions or simplify tax compliance. But it also means the partnership not individuals bear the full corporate-tax burden

Services

Abu Dhabi

Dubai

Sharjah