The Council of Ministers has taken a decision concerning the tax residence of legal entities and individuals in the United Arab Emirates. Under the decision, and notwithstanding the provisions of tax treaties, the criteria for tax residence are determined as follows:
Legal entities
Legal entities are considered resident in the United Arab Emirates if they meet one of the following conditions:
- they have been established, formed or recognized in the United Arab Emirates. This excludes branches registered by foreign companies; and/or
- they are considered tax residents under UAE tax laws.
Individuals
Individuals are considered residents of the United Arab Emirates if they meet one of the following conditions:
- if their usual or principal residence and centre of their financial and personal interests are located in the United Arab Emirates, or if they meet the conditions and criteria that would be set by a decision of the Minister of Finance;
- if they are present in the United Arab Emirates for a period of 183 days or more in any 12-month period; and/or
- if they are UAE or GCC nationals or hold a UAE residence permit and are present in the United Arab Emirates for a period of 90 days or more in any 12-month period, and meet one of the following criteria:
- they have a permanent residence in the United Arab Emirates; and/or
- they are employed or engaged in business activities in the United Arab Emirates.