The Ministry of Finance of the United Arab Emirates has published Cabinet Decision No. 35 of 2025, replacing the earlier Cabinet Decision No. 56 of 2023 on the determination of a Non-Resident Person’s Nexus in the Emirates for the purposes of Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses.
The new Cabinet Decision sets out conditions under which Non-Resident juridical investors, notably those investing in Qualifying Investment Funds or Real Estate Investment Trusts, are considered to have a nexus in the Emirates and therefore, are subject to Corporate Tax therein.
Although Cabinet Decision No. 56 of 2023 remains applicable to Tax Periods beginning before 1 January 2025, the new Cabinet Decision No. 35 of 2025 will apply to all Tax Periods commencing on or after that date.
Our Tax Partner, Olivier Remacle and our Tax Principal, Barbara Schwartz, describe thereafter the amendments provided by the new Cabinet Decision to the determination of a Non Resident Person’s Nexus in the Emirates.