UAE Corporate Tax - Tax Residency - Natural 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).

In our previous alert, we provided a snapshot of criteria to determine the UAE tax residency for legal persons. This article summarizes the criteria to determine UAE tax residency for Natural Persons (individuals) effective 1 March 2023.

Further to the above general rule;

1. Residency Permit means permit or authorization issued by UAE granting the natural person the right to reside or work in UAE. It does not include the Permit granted to an individual to enter the UAE for a specified period for the purposes of temporary travel, tourism, sports, treatment or any other purpose.

2. Natural persons meeting the criteria of tax residency can obtain a Tax Residency Certificate from the Federal Tax Authority (FTA) by submitting an application in the prescribed form and furnishing requisite documents.

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.

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