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May 15, 2026

This decision establishes when a non-resident juridical person has a tax nexus in the UAE for Corporate Tax purposes. A nexus is created if the non-resident person earns any income from immovable property located in the State, including from its sale, disposal, letting, or any other form of exploitation. An anti-abuse rule targets the artificial transfer of rights in immovable property to evade tax. Non-resident persons who are determined to have a nexus under these rules are required to register for Corporate Tax with the Federal Tax Authority. The decision is effective from June 1, 2023.

[Applicable for Tax Periods that commenced before 1 January 2025]
[Repealed by Cabinet Decision No. 35 of 2025]

This is not an Official Translation:

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. 56 of 2023

Issued 30 May 2023 – (Effective from 1 June 2023)

[GTL Notes]

The Cabinet:

Having reviewed 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,
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 on the Taxation of Corporations and Businesses shall be applied to this Decision, with exception to 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

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 that is a Non-Resident Person shall have a nexus in the State if it earns income from any Immovable Property in the State.
For the purposes of paragraph (c) of Clause (3) of Article 12 of the Corporate Tax Law, the Taxable Income that is attributable to the Immovable Property in the State shall include income derived from the right in rem, sale, disposal, assignment, direct use, letting, including subletting and any other form of exploitation of Immovable Property.

The Cabinet:

Decided:

Article 1 - Definitions

Article 2 - Nexus in the State

Article 3 - Artificial Transfer of Rights in Immovable Property