Answer:
A person is considered a Resident Person under UAE Corporate Tax law if they meet specific legal conditions related to their place of incorporation, management, or business activity (Article 11 of Federal Decree-Law No. 47 of 2022)
Resident Persons include:
- UAE-incorporated juridical persons, such as LLCs, PSCs, and PJSCs – automatically treated as residents for Corporate Tax purposes.
- Foreign juridical persons that are effectively managed and controlled in the UAE (e.g., where strategic decisions are made).
- Natural persons conducting a business or business activity in the UAE, including self-employed individuals.
Resident Persons are subject to UAE Corporate Tax on income from inside and outside the UAE, though certain types of foreign-source income may be exempt, and foreign tax credits are allowed.
Example:
- A Free Zone Company incorporated in Sharjah is a Resident Person.
- A UK company whose board and strategic decisions are made in Abu Dhabi is also a Resident Person.
- A Dubai-based freelancer earning AED 1,200,000 annually from clients in the UAE and abroad is a Resident Person and subjec...