OPED: The new UAE Tax Residency Guidelines: Key insights and implications
In October 2024, the Federal Tax Authority (“FTA”) introduced updates to the UAE’s tax residency framework, including new procedures for obtaining a tax residency certificate (a “TRC”). These updates align with international standards, such as OECD tax transparency frameworks and global Double Taxation Agreements (“DTAs”), while enhancing the UAE’s appeal to ultra- and high-net-worth individuals (“U/HNWIs”). The framework now incorporates both objective criteria, e.g. physical presence, and subjective factors, such as personal and business ties or demonstrable plans to reside in the UAE long-term.
