1. For the purposes of this Decree-Law, unless an application is made under Clause (8) of this Article, and subject to any conditions the Minister may prescribe, the Unincorporated Association itself shall not be considered a Taxable Person, and Persons conducting a Business as an Unincorporated Association shall be treated as individual Taxable Persons. 2. Where Clause (1) of this Article applies, a Person who is a partner in an Unincorporated Association shall be treated as: a. Conducting the Business of the Unincorporated Association. b. Having a status, intention, and purpose of the Unincorporated Association. c. Holding assets that the Unincorporated Association holds. d. Being party to any arrangement to which the Unincorporated Association is a party. 3. For the purposes of Clause (1) of this Article, the assets, liabilities, income and expenses of the Unincorporated Association shall be allocated to each partner pro rata their distributive shares in that Unincorporated Association, or in the manner prescribed by the Authority where the distributive share of a partner cannot be identified. 4. The Taxable Income of a partner in an Unincorporated Association shall take into account the following: a. Expenses incurred directly by the partner in conducting the Business of the Unincorporated Association. b. Interest Expense incurred by the partner in relation to contributions made to the capital account of the Unincorporated Association. 5. Interest paid by an Unincorporated Association to a partner on their capital account shall be treated as an allocation of income to the partner and is therefore not a deductible expenses for the purpose of calculating the Taxable Income of that partners incorporated Association. 6. For the purposes of calculating and settling the Corporate Tax Payable of a partner in an Unincorporated Association under Chapter Thirteen of this Decree-Law, any foreign tax incurred by the Unincorporated Association shall be allocated as a Foreign Tax Credit to each partner pro rata their distributive share in the Unincorporated Association. 7. A Foreign Partnership shall be treated as an Unincorporated Association for the purposes of this Decree-Law if all of the following conditions are met: a. The Foreign Partnership is not subject to tax under the laws of the foreign jurisdiction. b. Each partner in the Foreign Partnership is individually subject to tax with regards to their distributive share of any income of the Foreign Partnership as and when the income is received by or accrued to the Foreign Partnership. c. Any other conditions as may be prescribed by the Minister. 8. The partners in an Unincorporated Association can make an application to the Authority for the Unincorporated Association to be treated as a Taxable Person. 9. Where an application under Clause (8) of this Article is approved: a. The provisions of Clauses (1) to (6) of this Article shall no longer apply to the partners in the Unincorporated Association in respect of the Business conducted by the Unincorporated Association. b. Each partner in the Unincorporated Association shall remain jointly and severally liable for the Corporate Tax Payable by the Unincorporated Association for those Tax Periods when they are partners in the Unincorporated Association. c. One partner in the Unincorporated Association shall be appointed as the partner responsible for any obligations and proceedings in relation to this Decree-Law on behalf of the Unincorporated Association. 10. Where the application under Clause (8) of this Article is approved, the Unincorporated Association shall be treated as a Taxable Person effective from the commencement of the Tax Period during which the application is made, or from the commencement of a future Tax Period, or any other date determined by the Authority.
Interpretation and application must be checked against the official text and current version.