The treatment of “joint coalition” as “tax subject”

Yesterday, the Ministry of Finance announced the issuance of the Cabinet’s decision regarding the joint coalition that was approved by the Federal Tax Authority for its treatment as a tax subject, for the purposes of the decree of the Federal Law No. 47 of 2022. The corporate tax law provides for the coalition’s treatment, according to the principle of tax transparency, where the coalition is not subject to the tax in itself, but the tax is imposed on partners according to For their shares, the law gives the partners the option to apply for the coalition treatment as a taxable entity, similar to any other legal person. Among the most prominent of what is included in the decision is that when agreeing to the request for tax transaction from partners in the joint coalition, he is considered a legal person and a resident person, which gives him the same tax treatment prescribed for legal persons.