UAE Corporate Tax – Conditions under which the presence of a Natural Person would not Create a Permanent Establishment for a Non-Resident Person

As per Ministerial Decision No. 83 of 2023 on the Determination of the Conditions under which the Presence of a Natural Person in the State would not Create a Permanent Establishment for a Non-Resident Person for Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

 

Conditions of a Temporary and Exceptional Presence in the State:

1. The presence is a consequence of exceptional circumstances of a public or private nature.
2. With respect to the exceptional circumstances of a public nature:
3. Adoption of public health measures by the competent authorities in the State or in the jurisdiction of the original workplace or by the World Health Organization.
4. Imposition of travel restrictions by the competent authorities in the State or in the jurisdiction of the original workplace.
5. Acts of war or occurrence of terrorist attacks.
6. Occurrence of natural disasters or force majeure beyond reasonable control.
7. Any other circumstances similar to those provided for in this paragraph as prescribed by the Authority
8. With respect to the exceptional circumstances of a private nature:

• • • Occurrence of an emergency health condition affecting the natural person or their relatives up to the fourth degree, including by way of adoption or guardianship.
    • Any other circumstances similar to those provided for in this paragraph as prescribed by the Authority.

1. The natural or the Non-Resident Person cannot reasonably predict the exceptional circumstances.
2. The natural person did not express any intention to remain in the State when the exceptional circumstances ended.
3. The Non-Resident Person does not have a Permanent Establishment in the State before the occurrence of the exceptional circumstances.

4. The Non-Resident Person did not consider that the natural person is creating a Permanent Establishment or deriving income in the State as per the tax legislation applicable in other jurisdictions.

 

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