Ministerial Decision No. 83 of 2023

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09 May 2023

Ministerial Decision No. 83 of 2023 outlines the criteria under which the presence of a natural person in the United Arab Emirates (UAE) will not result in a Permanent Establishment for a Non-Resident Person under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. The Minister of State for Financial Affairs based this decision on the Constitution, Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments, Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments, Federal Decree-Law No. 28 of 2022 on Tax Procedures, and Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

Under Article 2 of this decision, the presence of a natural person in the UAE will be considered temporary and exceptional under paragraph (a) of Clause 7 of Article 14 of the Corporate Tax Law if the following conditions are met:

  • The presence of the natural person in the UAE is due to exceptional circumstances of a public or private nature,
  • The natural person or the Non-Resident Person could not have reasonably predicted the outstanding circumstances,
  • The natural person did not express any intention to remain in the UAE after the exceptional circumstances ended,
  •  The Non-Resident Person did not have a Permanent Establishment in the UAE before the occurrence of the exceptional circumstances, and
  •  As per the tax legislation applicable in other jurisdictions, the Non-Resident Person did not believe that the natural person was creating a Permanent Establishment or generating income in the UAE.

Article 2 further defines exceptional circumstances as situations or events beyond the natural person's control, which occurred while they were already in the UAE, and which they could not reasonably predict or prevent, including public health measures, travel restrictions, legal sanctions, acts of war or terrorism, natural disasters, force majeure, or other similar circumstances prescribed by the Authority.

This Ministerial Decision will come into effect 15 days after its publication, as outlined in Article 3. Hence, this document was published on 10th April 2023 and became effective on 25th April 2022.

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