Legislation Details
- Full Title: Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax
- Law Type: Federal Decree-Law
- Law Number: No. (56) of 2023
- Issued Date: 30 May 2023
- Effective Date: 01 Jun 2023
- Official Gazette: No. 752
- Sector: Tax
- Status: Active
- Number of Articles: 17
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution determines the nexus criteria for non-resident persons under the Federal Decree-Law Concerning the Corporate Tax. It defines the circumstances in which a non-resident person is considered to have a nexus in the UAE, particularly in relation to income derived from immovable property. The Resolution also addresses the corporate tax registration requirements for non-resident persons with a UAE nexus and provides for the issuance of implementing resolutions by the Minister of Finance. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 1-6)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to determine the nexus criteria for non-resident persons under the Federal Decree-Law Concerning the Corporate Tax. It applies to any non-resident person earning income from immovable property in the UAE. The Resolution establishes the circumstances in which a non-resident person is considered to have a nexus in the UAE, which triggers corporate tax registration and reporting obligations. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Immovable Property: Any land, building, structure, engineering work, fixture, or equipment that is permanently attached to the land or seabed. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 1)
- Corporate Tax Law: Federal Decree-Law No. (47) of 2022 Concerning the Corporate Tax. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 1)
What are the main obligations and requirements?
The main obligations under this Resolution are: 1. Non-resident persons earning income from immovable property in the UAE are considered to have a nexus in the UAE. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 2) 2. The taxable income attributable to immovable property in the UAE includes income from rights in rem, sale, disposal, assignment, direct use, letting, subletting, and any other form of exploitation of the property. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 2) 3. Non-resident persons with a UAE nexus are required to register with the Federal Tax Authority. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 4)
What licensing, registration, or approval requirements exist?
Non-resident persons that have a nexus in the UAE in accordance with Article 2 of this Resolution are required to register with the Federal Tax Authority, as per Article 51 of the Corporate Tax Law. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 4)
Which authorities or bodies are responsible for enforcement?
The Resolution states that the Minister of Finance shall issue the necessary resolutions for implementing the provisions of this Resolution. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 5)
When did this law come into effect?
This Cabinet Resolution shall be published in the Official Gazette and shall come into force as of 01 June 2023. (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Art. 6)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to and issued pursuant to the following UAE legislation: - Federal Law No. (1) of 1972, Concerning the Competences of Ministries and Capacities of Ministers - Federal Decree-Law No. (13) of 2016, Establishing the Federal Tax Authority - Federal Decree-Law No. (28) of 2022, Concerning Tax Procedures - Federal Decree-Law No. (47) of 2022, Concerning the Corporate Tax (Cabinet Resolution Determining the Non-Resident Person's Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax, 2023, Preamble)
Source Documents
This article analyses Cabinet Resolution Determining the Non-Resident Person’s Nexus for the Purposes of Federal Decree-Law Concerning the Corporate Tax for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.