The emirates Ministry of Finance issues decisions regarding permanent establishments for non-residents

The United Arab Emirates (UAE) Ministry of Finance (MoF) has issued Ministerial Decision No. 83 of 2023 regarding situations in which the presence of natural persons in the UAE could/could not give rise to a permanent establishment for the non-resident person (foreign company). These scenarios include situations in which the presence of the natural persons in the UAE is due to unanticipated temporary exceptional circumstances, and in which the natural persons do not intend to remain in the UAE once these circumstances have ended.

The ruling provides more clarification about the parameters that define a temporary and exceptional presence in the UAE. In accordance with the very best policies that have been developed all over the world, it is meant to bring about greater transparency while also putting an end to tax evasion and double non-taxation.

issues decisions regarding permanent establishments for non-residents
UAE Ministry of Finance

An important decision from the UAE Ministry of Finance

The Ministry has issued another Ministerial Decision, No. 82 of 2023, which specifies the taxable persons that are required to compile and maintain audited financial accounts. These taxable persons include those that derive Revenue that is greater than AED 50 Million and Qualifying Free Zone Persons.

The Under-Secretary of the Ministry of Finance, Younis Haji Al Khouri, made the following statement regarding the decisions: "The decisions bring transparency, simplicity, and clarity to the UAE's Corporate Tax regime which facilitates compliance and minimises the risks of tax avoidance and double non-taxation, ensuring a fair and well-regulated tax environment for all."

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