This article has been researched and written by Scott Cairns and the team at Creation Business Consultants. AI has not been used in generating this article.
Tax planning in the UAE, among other considerations, should be a top priority on your to-do list when moving to the UAE as an expatriate. The most crucial matter is to establish your tax residency, as this will play a key role in assessing your tax position in the UAE and your home country.
Below, we will delve into the following topics:
- Tax residency
- Avoidance of double taxation based on the Double Tax Treaty (“DTT”)
In principle, the UAE’s definition of Tax Residency for individuals aligns with internationally recognized standards and is defined as follows:
- An individual has a substantial presence and personal and economic relations in the UAE.
- The physical presence of the individual in the UAE for a period of 183 days or more during any twelve-month period.
- The physical presence of the individual in the UAE for a period of 90 days or more during any twelve-month period, and one of the following conditions is met:
- The individual is a UAE national.
- The individual is a GCC national.
- The individual holds a valid residence permit in the UAE with a permanent place of residence or is engaged in employment or business in the UAE.