The UAE Ministry of Finance has released guidelines regarding the determination of tax residency for individuals residing in the nation, according to a report by Emirates News Agency (WAM).
According to the guidelines, an individual’s presence in the UAE, even for parts of a day, will be counted in deciding whether they meet the 183-day or 90-day thresholds for tax residency.
The guidelines also state that an individual’s usual place of residence will be considered in the UAE if they normally or habitually reside there, and their ‘centre of financial and personal interests’ is in the UAE due to their work, personal, economic relationships, or other connections.
It is not necessary for an individual to own their permanent place of residence, but such a place must be continuously available to them.
Younis Haji Al Khouri, the Under-Secretary of the Ministry of Finance, stated that this Ministerial Decision provides additional clarity to individuals regarding when they are considered tax residents under UAE taxation laws.
“The Ministerial Decision on implementing domestic tax residency rules is important as it gives additional clarity to individuals in respect of when they are considered as ‘tax residents’ under UAE taxation laws” Younis Haji Al Khouri, Under-Secretary of the Ministry of Finance said.
The latest decision clarifies certain rules outlined in Cabinet Decision No. 85 of 2022 on the determination of tax residency for natural and legal persons, which was issued in September of last year.
Follow us on
