Article 16 – Case Scenarios
Mr. A & Mr. B are two partners in an Unincorporated Partnership in UAE having their distributive share as 70:30. The total income of the Unincorporated Partnership is AED 500,000.
Below mentioned are the details related to Mr. A:
- Expenditure incurred directly in conducting the Business of the Unincorporated Partnership of AED 50,000.
- Interest expenditure incurred in relation to contributions made to the capital account of the Unincorporated Partnership for AED 35,000.
- Interest received from the Unincorporated Partnership on their capital account of AED 80,000.
Calculate the Taxable Income of Mr. A.
Solution:
As per the provisions of Article 15; Partners in an Unincorporated Partnership shall be treated as individual Taxable Persons instead of the Partnership itself.
The taxable income of Mr. A will be as follows:
