Understanding Tax Residency and Corporate Tax Obligations in the UAE
The concept of tax residency plays a crucial role in determining corporate tax obligations within the UAE. Under Federal Decree-Law No. 47 of 2022, it is compulsory for businesses and individuals to understand their tax residency status, as it directly impacts the scope of income subject to corporate tax. This article outlines the classification of tax residency, detailing the tax responsibilities of residents and non-residents alike. The Importance of Tax Residency Status Tax residency status serves as the foundation for determining whether income will be taxed globally or domestically. In the UAE, businesses and individuals are categorized as either residents or non-residents under the tax