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May 15, 2026

This decision revises the criteria for a non-resident person's tax nexus in the UAE. A nexus is created if the non-resident derives income from immovable property in the State. It expands the definition to include non-resident investors in Qualifying Investment Funds whose income is adjusted under Cabinet Decision No. 34 of 2025. This establishes a nexus for foreign investors in certain UAE investment funds, mandating their registration for Corporate Tax. The anti-abuse rule against artificial property transfers is maintained.

[Applicable for tax periods commencing on or after 1 January 2025]
[Repeals Cabinet Decision No. 56 of 2023]

This is not an Official Translation:

Determination of a Non-Resident Person's Nexus in the State for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

Cabinet Decision No. 35 of 2025

Issued 27 Mar 2025 - (Effective from day following publication in the Official Gazette)

The Cabinet:

Having reviewed the Constitution,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments,
Cabinet Decision No. 56 of 2023 on Determination of a Non-Resident Person's Nexus in the State for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
Cabinet Decision No. 34 of 2025 on Qualifying Investment Funds and Qualifying Limited Partnerships for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,
Pursuant to what was presented by the Minister of Finance and approved by the Cabinet,

Decided:

Article 1 - Definitions

Definitions in Federal Decree-Law No. 47 of 2022 referred to above shall apply to this Decision, with the exception of that, the following expressions shall have the meaning assigned against each, unless the context requires otherwise:

Immovable Property

Means any of the following:

Any area of land over which rights or interests or services can be created.
Any building, structure or engineering work attached to the land permanently or attached to the seabed.
Any fixture or equipment which makes up a permanent part of the land or is permanently attached to the building, structure or engineering work or attached to the seabed.

Corporate Tax Law

Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments.

Article 2 - Nexus in the State

For the purposes of paragraph (c) of Clause (4) of Article 11 of the Corporate Tax Law, any juridical person incorporated or otherwise established or recognised under the legislation of a foreign jurisdiction shall have a nexus in the State in any of the following cases: