The Ministry of Finance issued Ministerial Resolution No. (83) of 2023 to specify the conditions and cases in which the mere presence of a natural person in the United Arab Emirates is not a reason for a non-resident person (foreign company) to become a permanent establishment in the country for corporate tax purposes, if His presence is temporary due to exceptional, unforeseen circumstances, and he has no intention of remaining in the country once these circumstances end.
The decision details cases of temporary and exceptional presence in the country and those of a public and private nature.. It aims to provide more clarity and prevent evasion and double taxation, in line with international best practices.
In the context of regulatory decisions related to corporate tax, the Ministry issued Ministerial Resolution No. (82) of 2023, which stipulates the need for taxable persons whose revenues exceed 50 million dirhams and qualified persons residing in the free zone to prepare and maintain audited financial statements.
Commenting on the two decisions, His Excellency Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said: “The two decisions provide transparency, simplicity and clarity regarding the corporate tax system in the UAE, which facilitates proper compliance with the law and reduces the risks of evasion and double taxation, thus ensuring a fair and orderly tax environment for all.” .
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