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UAE Corporate Tax - Tax Residency - Legal Persons

The UAE Cabinet has released rules to determine UAE tax residency effective from 1 March 2023. Different conditions have been specified for legal persons (such as LLCs, PJSCs, LLPs, etc.) and natural persons (individuals).


This article focuses on the tax residency criteria for legal persons.


Any company, mainland or Free Zone, will be considered a UAE tax resident if it has been formed under any laws or regulations of the UAE.

Further to the above general rule;

  1. If a company is registered outside the UAE and has a branch in the UAE, the branch will not be considered a tax resident of the UAE. ( More update expected...)

  2. Foreign companies with ‘effective management and control’ in the UAE are at risk of being deemed as UAE tax residents ( More update expected...)

  3. The UAE has entered into 136 tax treaties with various countries and these treaties will supersede the tax domicile conditions stated in this law.

  4. Legal persons meeting the criteria of tax residency can obtain a Tax Residency Certificate from the UAE Federal Tax Authority (FTA).

 



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