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Determining Tax Residency for Purposes of Corporate Tax in UAE

Ministerial Decision No. 27 of 2023 on Implementation of Certain Provisions of Cabinet Decision No. 85 of 2022 on Determination of Tax Residency stipulates the requirements for taxable persons to be regarded as tax residents in the UAE. Therefore, for taxable persons to effectively assess and determine their tax residency, it is advisable to seek the services of Tax Consultants UAE.

What is tax residency?

According to the Cabinet Decision, tax residency refers to the location at which a taxable person or business must pay tax on their international revenue.
For instance, if a business is regarded as a tax resident in the UAE, it will be required to pay corporate tax on revenue earned both domestically and internationally. The Cabinet Decision specifies a number of requirements to assess whether a person or business is a tax resident in the UAE.

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