Tax residency question

[mgs999999999]

Hi guys,

According the article 4 point 3 of the UAE law: https://tax.gov.ae/Datafolder/Files/Legislation/Corporate Tax/Cabinet Decision 85 of 2022 - For publishing.pdf

I have the following question:

If you have a free zone company in the UAE that it is only you )meaning you employ yourself and you pay yourself a salary every month) and you stay 90 days per year in the UAE under short term agreement (Airbnb, etc) meaning that you do NOT have a 1 year leasing contract, will you be considered tax resident in the UAE? All this is under the assumption that you do not spend 183 days in another country and that the only business you have is in the UAE.

Thanks a lot in advance,

Best wishes

 

[bnpsu]

For personal tax residency you should stay for 90 days and have a long term contract (called Ejari) OR 183 days. If you don't qualify for either than you're not a personal tax resident

 

[joffreylol]

I would disagree with bnpsu based on the official document you shared. The document says meets any of the following: a. He has a Permanent Place of Residence in the State. b. He carries on an employment or Business in the State. My understanding is that since you are employed by your FZCO you fall under part b.

 

[mgs999999999]

joffreylol said:
I would disagree with bnpsu based on the official document you shared. The document says meets any of the following: a. He has a Permanent Place of Residence in the State. b. He carries on an employment or Business in the State. My understanding is that since you are employed by your FZCO you fall under part b.
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Thank you both for your reply. That is actually my point joffreylol. As it is written it should be fine with only spending 90 days. However, most people say you need to have a long term lease agreement in place and that is what is getting me very confused

 

[joffreylol]

My experience with the UAE is that it's always confusing so I totally understand you. You can always be on the safe side and just rent for 1 year in Sharjah for like AED10k.