Tax Residence under UAE Legislation
DOI:
https://doi.org/10.35246/r3ahsa06Keywords:
Tax Territoriality, Tax Domicile, Resident Person, Non-Resident Person, Double Taxation, Tax AvoidAbstract
The tax law, like other laws, is a manifestation of state sovereignty, as each state exercises all its powers within the scope of its territory without exceeding the borders of other, which is expressed in the principle of territoriality of the tax law, This means that every country cannot impose its taxes outside its borders, this thing may be a natural in the past where the activity of individuals did not pass the borders of their countries, but under the economic development and the activation of trade exchange between countries and investments which exceeding the borders of regions, and the emergence of the multinational companies, all of these made The world as one village, so it will be necessary to determine the tax domicile differently, according international standards, because it related to huge revenues that countries may lose as a result of applying the old concept . It is also necessary to point out the weak points in this regard, which the legislator must reconsider and amend to ensure proper implementation of the law to achieve its goals at all levels.
The Emirati legislator has stipulated this in the Tax Procedures Law and its Executive Regulations, as well as in the Corporate and Business Tax Law, and in multiple administrative regulations, so it will be necessary to prepare a comprehensive study of all the provisions of tax domicile in accordance with Emirati legislation, especially UAE is one of the most important investment destinations in the world.
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References
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Third: Laws and Regulations:
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VI. Cabinet Resolution No. (49) of 2023 regarding determining the categories of businesses or business activities practiced by a resident or non-resident natural person that are subject to corporate tax.
VII. Ministerial Resolution No. (247) of 2023 regarding the issuance of a tax residency certificate for the purposes of international agreements.
VIII. Cabinet Resolution No. (56) of 2023 regarding determining the relationship of a non-resident person in the State for the purposes of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax.
IX. Ministerial Resolution No. (83) of 2023 regarding determining the conditions for not considering the presence of a natural person in the State as a reason for creating a permanent establishment for a non-resident.
X. Ministerial Resolution No. (43) of 2023 regarding the exception from registration for the purposes of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax.
XI. Cabinet Resolution No. (85) of 2022 regarding determining the tax domicile.
XII. Arab Republic of Egypt. Decision of the Council of Ministers No. 991 of 2005 promulgating the Executive Regulations of the Income Tax Law promulgated by Law No. 91 of 2005, Official Gazette, No. 295 (continued), 27 December 2005.
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I. OECD, Model Agreement on Exchange of information on Tax matters of 2002 (with detailed commentary), 2002, www.OECD.
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VI. Foreign Account Tax Compliance Act (FATCA) – IRS. https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca
Fifth: Websites:
I. https://www.hsbc.ae/content/dam/hsbc/ae/docs/ar/legal/uae-crs-faqs-tax-residency.pdf, 26/5/2024,13.14 PM.
II. www.Tax.gov.ae .
https://tax.gov.ae/ar/taxes/corporate.tax/faqs.aspx. https://taxsummaries.pwc.com/canada/individual/tax-administration .
III. Tax Residency in Egypt: Clarifying Residency Rules for Taxation, eg.andersen.com .
IV. Canda- Individual - Tax administration, 10 December 2024 .
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VI. Foreign Account Tax Compliance Act (FATCA) – IRS. https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca.
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