Determination of UAE tax residency. Resolution No. (85) 2022

Until recently, in the UAE, the issue of tax residency was resolved by issuing a tax residency certificate (TRC), but there were few criteria for determining residency. So, for example, individuals who stayed more than 183 days in the last 12 months could count on the status of a tax resident in the UAE, which had to be confirmed by the relevant documents.

The status of tax resident for companies was determined after at least one year after registration and submission of evidence required by the tax service (Federal Tax Authority – FTA).

 

 

According to the new Resolution, an individual will be a UAE tax resident if:

In accordance with the Resolution, a legal entity (organization or institution) will be a tax resident of the UAE if the organization:

The changes should come into effect on March 1, 2023. Most likely, before the changes come into force, the FTA will issue clarifications on the application of the Resolution.

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