UAE Tax Residency Resolution- Effective From March 1st, 2023

Nov 21, 2022 / Haroon Juma / VAT & Tax Blogs

UAE Tax Resident

The UAE has issued Cabinet Resolution No. (85) of 2022 (Resolution) on determining tax residence in the UAE. The Resolution clarifies a legal domestic definition of tax residency and outlines the rules to determine when a person (i.e., a natural or legal person) may be considered a tax resident of the UAE. The Resolution also highlights administrative matters, such as the procedure for the issuance of Tax Residency Certificates (TRCs).

The Resolution will enter into force from 1 March 2023.

Resolution Details

Under the Resolution, a corporate entity (i.e., a legal person) can be considered a UAE tax resident where one of the following conditions is met:

  1. The entity is established, formed, or recognized in the UAE, (not a UAE branch registered by a foreign entity)
  2. The entity is considered a tax resident under the (applicable) tax law of the UAE.

The UAE corporate tax (CT) legislation has not yet been enacted to determine the requirements under point 2. Nevertheless, based on the consultation document released by the Ministry of Finance (MoF) on 28 April 2022, a company established outside the UAE may still be treated as a UAE tax resident if it is effectively managed and controlled in the UAE.

Individuals (natural persons)

Article 4 of the Resolution defines natural persons as tax residents in the UAE if one of the following conditions is met:

  • The individual’s usual or principal place of residence is in the UAE, and the center of their financial and personal interests are in the UAE or other conditions and criteria provided in a specific decision (to be) issued by the UAE MoF.
  • The individual has been physically present in the UAE for a period of 183 days or more in a consecutive 12-month period.

Tax residence of personsCorporate entities (legal persons)

The individual has been physically present in the UAE for a period of 90 days or more over a consecutive 12-month period and is a UAE citizen, UAE resident or GCC national who either

  • has a permanent place of residence in the UAE or
  • (ii) carries out a job or business in the UAE.

The definitions align with internationally recognized best practices.


Where a person is considered a tax resident under either of the definitions outlined above, they may apply to the FTA to obtain a Tax Residency Certificate. This is a formal requirement for UAE residents wishing to claim benefits under the relevant tax treaty or other forms of international tax relief.

The FTA will approve the application and issue a Tax Residency Certificate when it is satisfied the applicant meets the relevant conditions. The FTA will also be responsible for issuing clarifications and directives for the implementation of this Resolution.

Furthermore, the Resolution provides for specific rules facilitating the collaboration between the FTA and all government agencies in the UAE to allow the collection of all relevant information, data and documents by the FTA, to implement the provisions of the Resolution. These measures seek to simplify the procedures currently in force.

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