The UAE Cabinet of Ministers issued Decision No. 85 of 2022 on September 9, 2022, to determine the tax residency status of individuals for UAE tax law or any other federal laws. The determination of tax residency status as per the definitions in this decision will be applicable from March 1, 2023. Ministerial Decision No. 27 of 2023, issued on February 22, 2023, provides further clarity on the definitions and introduces a precise way of calculating the stay period in the UAE to determine tax residency status for individuals and corporations. The introduction of the new domestic residency definition will be useful when referring to domestic laws of the UAE, particularly when bilateral law agreements have been entered into between UAE and other countries.
