MINISTRY DECISION No. 27 UAE TAX RESIDENCE EXPLAINED BY TAX AGENT

On 9 September 2022, the UAE Cabinet of Ministers issued Decision No. 85 of
for 2022, which provides a new domestic definition and criteria for when an
individual or a legal entity shall be considered a Tax Resident of the UAE for the
purposes of any UAE tax law or bilateral tax agreement from 1 March 2023.
Ministerial Decision No. 27 of 2023 on Implementation of Certain Provisions of
Cabinet Decision No. 85 of 2022 on Determination of Tax Residency, published
on 1 March 2023, gives further clarification on a number of the definitions
relevant to the Tax Resident definition for individuals.
The domestic Tax Resident definition is aligned to internationally recognised
standards and gives additional clarity to individuals and legal entities in respect of
their UAE tax residency position.
Many of the bilateral tax agreements the UAE has entered into with other
territories make reference to the domestic laws of the UAE for determining
whether a person is a resident of the UAE for purposes of the respective treaty.
This new domestic law provides a clear definition of a Tax Resident in the UAE,
which will facilitate the application of these treaties and the issuance of tax
residence certificates under such treaties.

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