GTL Summary:

Article 41 of the UAE Tax Procedures Law establishes the principle of joint and several liability for tax obligations arising from partnerships or businesses without an independent legal personality. It stipulates that where multiple persons participate in such a business, each individual is fully and collectively responsible towards the Federal Tax Authority (FTA). This comprehensive liability covers all Payable Tax and any associated Administrative Penalties related to the business's operations. This provision ensures the Authority can recover outstanding dues from any or all of the partners, regardless of their internal profit-sharing or ownership arrangements.

Document Type: Tax Law Article
Law: Tax Procedures (FDL No 28 of 2022)
Article Number: 41
Country: 🇦🇪 UAE
Location: Part 5 - Refund and Collection of Tax &rsaquo; Chapter 3 - Settlement and Collection of Tax and Administrative Penalties in Special Cases
Order: 41
Last updated at: 2025-12-19 09:23:02 UTC

Part 5 - Refund and Collection of Tax

Chapter 3 - Settlement and Collection of Tax and Administrative Penalties in Special Cases

Article 41 - Responsibility of Settlement of Tax and Administrative Penalties in the Case of a Partnership

Without prejudice to any provisions set out in the Tax Law, if multiple Persons participate in a Business that does not have independent legal personality, each of them shall be jointly and severally liable towards the Authority for any Payable Tax and Administrative Penalties related to such Business.

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