The Ministry of Finance announced a Ministerial resolution (no. 27 of 2023) setting forth some rules that enhance clarity in determining tax residency as a follow-up to the UAE's cabinet resolution no. 85 of 2022 on the subject.

If a legal entity is founded or recognized in the UAE, it is regarded as a UAE tax resident. This does not include UAE branches set up by organizations registered in other countries. If a company's management and control are based in the UAE, it is still possible for it to be a tax resident of the UAE.

The 90-day rule is applicable to UAE nationals, residents, and nationals of the GCC who spend all or part of a total of 90 days physically present in the UAE during a 12-month period. The most recent ruling further clarifies that as long as a permanent residence in the UAE is available to a person, they do not necessarily need to own it.

One of the guidelines established by the most recent Ministerial decisions clarifies the 183-day norm by stating that both financial and personal interests would be taken into account when defining one's tax residence. A natural person may be regarded as a tax resident if they stay in the UAE for 90 days and have significant relationships with the country on a professional, personal, financial, or other level.

The fact that partial days will also contribute toward the 90-day and 183-day criteria has been added as a minor detail to the procedure of assessing one's tax residency. This section has a big impact on all Dubai-based professionals whose jobs involve a lot of travel outside the Emirates.

This article's information is meant to serve as a general introduction to the topic. You should seek specialized guidance regarding your unique circumstances.