The UAE Ministry of Finance published two decisions on 28 April, one on audited financial statements and the other on permanent establishments (PEs) and the other on audited financial statements:
- Ministerial Decision No. 82 specifies that persons deriving annual revenue exceeding AED 50 million and qualified free zone persons must prepare and maintain audited financial statements.
- Ministerial Decision No. 83 sets out the conditions under which the temporary and “exceptional” presence of an individual in the UAE would not create a PE for a nonresident. The decision also lists exceptional events and situations that are beyond the control of the individual:
- Public nature: e.g., the adoption of health measures by the authorities, travel bans, terrorist attacks, acts of war, natural disasters and the imposition of legal sanctions on the individual; and
- Private nature: e.g., emergency health conditions affecting the individual or their relatives or events of a similar nature.
As per the decision, the Federal Tax Authorities can also prescribe other similar circumstances for this purpose.
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