Prior to the introduction of UAE corporate income tax, which came into effect on 1 June 2023, having a UAE resident involved in the management and control of a foreign entity was not an issue.
However, with the release of the latest ministerial and cabinet decisions, a foreign company has to be mindful of its connections to the UAE, specifically when it comes to concepts such as "permanent establishment" and "place of effective management", as these factors may now cause such foreign entities to fall within the scope of UAE corporate income tax.