UAE unveils tax residency criteria

[bizman]

does someone of you really believe the UAE will cooperate with governments around the world like they do in the EU ?

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[karishi]

bizman said:
does someone of you really believe the UAE will cooperate with governments around the world like they do in the EU ?
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All it's possible, the recent happenings on more serious things between usa and the saudi show that in the middle east they are perfectly capable of saying something and doing the exact opposite.

 

[Martin Everson]

bizman said:
does someone of you really believe the UAE will cooperate with governments around the world like they do in the EU ?
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Depends what type of cooperation you mean. But in terms of tax cooperation they will have no choice but to live up to what they signed up to.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[aboveandbeyond]

Further to the above,
Once the new law is in effect do you think it would also apply for TRC requests for years pre dating the law say for 2022? i.e after the law passes do you think i can get the TRC for 2022 by meeting the 90 days+ RP criteria, but not the 180days which are in effect now?

 

[Skenners]

does this mean they are getting rid of the tax residency thing where you only need to be in there for 1 day in 180 days thing? or is it a different matter?

 

[aboveandbeyond]

Skenners said:
does this mean they are getting rid of the tax residency thing where you only need to be in there for 1 day in 180 days thing? or is it a different matter?
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The 1 day every 180 days applies for the Residence Permit (RP). The Tax Residence Certificate (TRC) is different matter and has different requirements, some of which are changing in 2023.

 

[Skenners]

aboveandbeyond said:
The 1 day every 180 days applies for the Residence Permit (RP). The Tax Residence Certificate (TRC) is different matter and has different requirements, some of which are changing in 2023.
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ah, thanks.

So with these changes, the rp goes toward this point for the trc

• The individual has been physically present in the UAE for a period of 90 days or more over a 12-month period and is a UAE citizen, UAE resident, or GCC national who either has a permanent place of residence in the UAE; or carries out a job or business in the UAE.

is that right? as long as theyve been there for 90 days

 

[aboveandbeyond]

Skenners said:
ah, thanks.

So with these changes, the rp goes toward this point for the trc

• The individual has been physically present in the UAE for a period of 90 days or more over a 12-month period and is a UAE citizen, UAE resident, or GCC national who either has a permanent place of residence in the UAE; or carries out a job or business in the UAE.

is that right? as long as theyve been there for 90 days
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Yes

 

[karishi]

Skenners said:
ah, thanks.

So with these changes, the rp goes toward this point for the trc

• The individual has been physically present in the UAE for a period of 90 days or more over a 12-month period and is a UAE citizen, UAE resident, or GCC national who either has a permanent place of residence in the UAE; or carries out a job or business in the UAE.

is that right? as long as theyve been there for 90 days
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I think that this clearly implies either having a property or an EJARI with a yearly contract, not living in an airbnb. I think you can then cancel the ejeari after you get your trc and then do it all again the following year, but I think at this point it makes more sense to buy and rent on airbnb for the remaining period.

 

[JackAlabama]

karishi said:
I think that this clearly implies either having a property or an EJARI with a yearly contract, not living in an airbnb. I think you can then cancel the ejeari after you get your trc and then do it all again the following year, but I think at this point it makes more sense to buy and rent on airbnb for the remaining period.
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airbnb/hotel (shortterm) carries quite a high premium over ejari-rentals, after a certain period spent in Dubai every year, the ejari-rent becomes "free" compared to hotels/airbnb. Maybe the threshold is around 4-5 months/year or so...

 

[hokus]

JackAlabama said:
airbnb/hotel (shortterm) carries quite a high premium over ejari-rentals, after a certain period spent in Dubai every year, the ejari-rent becomes "free" compared to hotels/airbnb. Maybe the threshold is around 4-5 months/year or so...
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Not true, has to be like 6-7 or even more.
The main disadvantage is, you have summer months included when you rent for a whole year.

 

[troubled soul]

Living in Dubai for 182Days is not as bad as people claim online ...experience by yourself .......better to play safe and spend 182 days in dubai

 

[ADROCK123]

• The individual's usual or principal place of residence is in the UAE and the centre of their financial and personal interests are in the UAE or other conditions prescribed by the minister; or

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OR

>principal place of residence aka permanent place of abode

a permanent place of abode is a residence (a building or structure where a person can live) that: you maintain, whether you own it or not; and. that is suitable for year-round use
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means that as long as you have a year long rental agreement you can spend 0 days in dubai (and you have some semblance of a life in dubai such as banking and some gym membership or something)

Am I correct? not even 3 months is required

 

[JackAlabama]

ADROCK123 said:
OR

>principal place of residence aka permanent place of abode



means that as long as you have a year long rental agreement you can spend 0 days in dubai (and you have some semblance of a life in dubai such as banking and some gym membership or something)

Am I correct? not even 3 months is required
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Well, that depends. If you life year round e.g. in Germany or so, it will not work and your case falls apart if/when you come under scrutiny from their side.

 

[Martin Everson]

ADROCK123 said:
means that as long as you have a year long rental agreement you can spend 0 days in dubai (and you have some semblance of a life in dubai such as banking and some gym membership or something)
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"0 days" are you being serious?

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[ADROCK123]

Martin Everson said:
"0 days" are you being serious?
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I am quoting the article, where am I wrong?

• The individual's usual or principal place of residence is in the UAE and the centre of their financial and personal interests are in the UAE or other conditions prescribed by the minister; or

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if you are trying to escape your home countries taxes, and you check your tax treaty with your home country and dubai it will say the same

As long as you: dont own property or have substantial ties to your home country, dont spend too much time in your home country (183 days, or 90 days, depending)
Then it is sufficient that owning property or having a lease in the 2nd country (UAE) will give the 2nd country the right to tax you, because you have a permanent abode there. The changes made here only allow you to realize that with your tax residency certificate

So if you have minimal ties to your home country, have a lease in UAE and spend maybe 1 month a year there (you will probably need to for renewal of lease/permits/visa), and spend the remainder of your time between other countries, you are good to go. It is not necessary to spend 3 months or 6 months in the UAE

This is more relevant if you are more of a digital nomad

Last edited: Nov 25, 2022

 

[Martin Everson]

ADROCK123 said:
I am quoting the article, where am I wrong?
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You want to be a permanent resident of a country without spending 1 single day there?

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[ADROCK123]

Martin Everson said:
You want to be a permanent resident of a country without spending 1 single day there?
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For someone who is a digital nomad, and doing remote/freelance work, it is the best option. You want a tax home who does not need you to be there, so you can show you have a tax home to your home country if your home country requires it (ex: canada)

So i can have a 0% tax base in uae and spend the other 11 months of the year wherever you want. Romania/bulgaria also have similar rules with their certificates

 

[Martin Everson]

I mean good luck explaining in court you are a permanent resident of country you have not spent 1 day in. I can't believe I am even having to write this.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[ADROCK123]

Martin Everson said:
I mean good luck explaining in court you are a permanent resident of country you have not spent 1 day in. I can't believe I am even having to write this.
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If I spend 0 days in my home country, and 0 days in dubai, who taxes my global income? It's clearly stated in tax treaties tie breaker provisions

1. For the purposes of this Convention, the term “resident of a Contracting State” means:
(i) an individual who is a national of the United Arab Emirates, provided that the individual has a substantial presence, permanent home or habitual abode in the United Arab Emirates and that individual's personal and economic relations are closer to the United Arab Emirates than to any other State;


2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then the individual's status shall be determined as follows:

• (a) the individual shall be deemed to be a resident only of the State in which the individual has a permanent home available and if the individual has a permanent home available in both States, the individual shall be deemed to be a resident only of the State with which the individual's personal and economic relations are closer (centre of vital interests);

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Having a permanent home (a year rental agreement) is sufficient, provided you have no substantial ties to the country you don't want to be taxed in. I have looked at court cases, it is black and white in the tax treaties.

Days tests is only one method of residence, read the tax treaty of your country and UAE. If you don't spend the days in either country it will almost always fall to having a permanent home, and then finally personal ties

Last edited: Nov 25, 2022