UAE Corporate Tax: Ministry Issues Decision Specifying Requirement For Firms Earning Over Dh 50 Million

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Dubai April 30, 2023:

The UAE’s Ministry of Finance has issued two decisions that seek to bring transparency and clarity to the country’s corporate tax regime — which will come into effect from June 1, 2023.

Ministerial Decision No. 82 of 2023 specifies that taxable entities— including qualifying free zone companies — that derive revenues of over Dh 50 million are required to prepare and maintain audited financial statements.

In another decision (No. 83 of 2023), the ministry clarified the situations where the presence of natural persons in the UAE could/could not give rise to a permanent establishment for the non-resident person (foreign company), including if their presence is due to unforeseen temporary exceptional circumstances and where they have no intention of staying in the UAE once these circumstances cease

The decision further specifies what constitutes a temporary and exceptional presence in the UAE. It aims to provide clarity and prevent tax avoidance and double non-taxation in alignment with global best practices.

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