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Presence of a Non-Resident Person and Permanent Establishment

UAE Ministerial Decision No. 105 of 2023 on Exempt Person Corporate Tax

Presence of a Non-Resident Person and Permanent Establishment

The UAE Ministry of Finance has issued a Ministerial Decision No. 83 of 2023 on the Determination of the Conditions under which the Presence of a Natural Person in the State would not Create a Permanent Establishment for a Non-Resident Person for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

Accordingly, for the purposes of paragraph (a) of Clause 7 of Article 14 of the Corporate Tax Law, in the case of a natural non-resident person, several conditions for temporary and permanent presence in the UAE have been specified.

Further, it defines an exceptional circumstance as a situation or event beyond the natural person’s control which occurred while he was already in the UAE, which he could not reasonably predict or prevent and which prevented him from leaving the State as originally planned. Accordingly, various exceptional circumstances of public nature and private nature have been prescribed.

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