The United Arab Emirates (UAE) Ministry of Finance has issued guidelines on determining tax residency for individual residing in the country, the Emirates News Agency (WAM) reported.
The rules, which took effect on Wednesday, are designed to clarify local definitions of determining whether a person or legal entity can be considered a tax resident in the UAE.
According to the guidelines, an individual’s ‘usual place of residence’ will be in the UAE if this is where he/she normally or habitually resides and their centre of financial and personal interests will be in the UAE if this is where their work, personal, economic relationships or other connections are the strongest.
The guidelines also states that all days or parts of a day in which an individual is physically present in the UAE will be counted in determining whether the 183-day or 90-day thresholds are met.
In addition, the individual does not need to own his “place of permanent residence”, but that place must be constantly available to him.
“The ministerial decision on implementing domestic tax residency rules is important as it gives additional clarity to individuals in respect of when they are considered as tax residents under UAE taxation laws,” Younis Haji Al Khouri, Undersecretary in the Ministry of Finance, said.
