The Ministry of Finance in the UAE has released new guidelines for determining if someone is a tax resident in the country. As per the guidelines, MoF will count all days or parts of the day to see if the person meets the requirement of 183 or 90 days (details given below).
To be considered a tax resident, a person doesn’t need to own a home, but they must have a place to stay in UAE. Undersecretary of MoF, Younis Haji Al Khouri, stated that the advisory informs residents about the eligibility criteria of tax residents.
What is Tax Residency in UAE?
In the UAE, tax residency is determined by the Federal Tax Authority (FTA) based on tax laws. An individual is considered a tax resident if they meet one of the following conditions:
- Spend 183 days or more in the UAE in a calendar year, whether continuously or intermittently.
- A permanent home in the UAE, regardless of the number of days spent in the country.
- A usual residence in the UAE. It’s defined as a place where an individual usually lives.
- A UAE citizen/resident, or GCC national with either a permanent place of residence or a job or a business in the country. Individuals must’ve been physically present in the UAE for 90 days or more in a 12-month period.
If an individual meets any of the conditions, they’re considered a tax resident for the entire calendar year. As tax residents, they must declare their income and pay taxes on it.
