[World Tax News] UAE Releases Conditions under which a NR is Considered to have a “Nexus” in UAE and More

Editorial Team – [2023] 151 taxmann.com 160 (Article)

1. UAE releases conditions under which a non-resident is considered to have a “Nexus” in UAE

The Ministry of Finance, UAE, announced Cabinet Decision No. 56 of 2023 on Determining a Non-Resident Person’s Nexus in the State for the purposes of Corporate Tax Law.

Article 2 of the Cabinet Decision provides that any juridical person that is a Non-Resident Person shall have a nexus in the UAE if he earns income from any Immovable Property in the UAE.

Taxable income attributable to the Immovable Property shall include income derived from the right in rem, sale, disposal, assignment, direct use, letting, subletting and any other form of exploitation of Immovable Property.

For this contest, Immovable Property means any of the following:

(a) Any area of land over which rights or interests, or services can be created.

(b) Any building, structure or engineering work attached to the land permanently or attached to the seabed.

(c) Any fixture or equipment that makes up a permanent part of the land or is permanently attached to the building, structure, engineering work or the seabed.

A Non-Resident Person with a nexus in the UAE shall be required to register with the Authority per Article 51 of the Corporate Tax Law.

Source: Cabinet Decision No. 56 of 2023

Click Here To Read The Full Article