LMKG Chartered Accountants

Resident –  Juridical Person

A juridical person is a Resident Person for the purposes of Corporate Tax if it is either:

  • incorporated or otherwise established or recognised in the UAE (this includes juridical persons incorporated, established or otherwise registered in Free Zones) or
  • incorporated or otherwise established or recognised outside the UAE but is effectively managed and controlled in the UAE.
  • Examples of juridical persons that are incorporated or otherwise established or recognised in the UAE include Joint Liability Companies, Limited Partnership Companies, Limited Liability Companies (LLCs), Public Joint Stock Companies (PJSCs), Private Joint Stock Companies (PJSCs), foundations, trusts that have been established under the UAE mainland legislation, and other entity forms that have a separate legal personality under the applicable UAE mainland legislation or Free Zone regulations. UAE branches of a domestic or foreign juridical person are regarded as an extension of their head office and, therefore, are not considered separate juridical persons.
  • These exclude sole establishments and individual partners in Unincorporated Partnerships.
  • A key factor is where key management and commercial decisions that are necessary for the conduct of the juridical person’s Business are in substance made. This could be the place where the highest level of decisions that are essential for the management of the juridical person are made, or where decisions that play a leading part in the management of a company from an economic and functional perspective are made.
  • Typically, this will be where a company’s board of directors (or any equivalent body for other types of juridical persons) makes these decisions.
  • However, depending on the specific facts and circumstances, other factors such as where the controlling shareholders make decisions, the location of another Person or body to which the board has delegated its decision-making powers, or the location where the board members or executive management of the juridical person reside may also need to be considered. It is important to note that there can only be one place of effective management and control at any one time.
  • For a juridical person to be considered effectively managed and controlled in the UAE, it is not necessary for its board members (or equivalent) to be resident in the UAE.


     Reference: (Corporate Tax – General Guide Corporate Tax Guide | CTGGCT1)

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