New UAE Tax Residency Rule

New tax rule

Cabinet Decision No. 85 of 2022 – Issued 2 Sept 2022


Brief overview

The new decision effectively provides us with guidelines on determining the tax residency for both natural and legal persons. It also outlines the requirements and conditions for identifying a person as a Tax Resident in the UAE.


Publication and Enforcement

The decision shall be effective from March 01, 2023.



1. Natural persons shall be considered UAE tax residents if they:

      • Have their primary residential place and financial and personal interests in UAE;
      • Was physically present in the UAE for 183 days or more within the relevant 12 consecutive months;
      • The person has been physically present in the UAE for 90 days or more, within the relevant 12 consecutive months, and is a UAE national, holding a valid Residence Permit in the UAE or holds the nationality of any state who is a member state of the Gulf Cooperation Council (GCC), and either the person has a Permanent Place of Residence in the UAE or carries on employment or Business in the UAE.


      2. Juridical person refers to an entity established or recognized under the laws and regulations of the state. Since a branch of a foreign juridical person registered in the UAE is an extension of its parent, such a branch is not generally considered a tax resident of the UAE.


      Tax Residency Certificate

      Applicable persons are required to make an application in the prescribed form and manner to the FTA for issuance of the tax residency certificate.


      International Agreements

      If the person is subject to any International Agreement that sets out conditions for determining tax residency, the provisions of that agreement will supersede the provisions of this legislation.


      Competencies of and Cooperation with the Authority 

      All government entities of the UAE must cooperate with FTA for implementing the provisions of this Decision.


      Executive Decisions

      FTA shall issue required decisions, clarifications, and directives for implementing any of this decision’s provisions.


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