Article 1 - Definitions

Definitions in Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses shall be applied to this Decision, with exception to that, the following expressions shall have the meaning assigned against each, unless the context requires otherwise:

Article 2 - Nexus in the State

1. For the purposes of paragraph (c) of Clause (4) of Article 11 of the Corporate Tax Law, any juridical person that is a Non-Resident Person shall have a nexus in the State if it earns income from any Immovable Property in the State.

2. For the purposes of paragraph (c) of Clause (3) of Article 12 of the Corporate Tax Law, the Taxable Income that is attributable to the Immovable Property in the State shall include income derived from the right in rem, sale, disposal, assignment, direct use, letting, including subletting and any other form of exploitation of Immovable Property.

Article 3 - Artificial Transfer of Rights in Immovable Property

If a Non-Resident Person artificially transfers or otherwise disposes of its right in rem in any Immovable Property in the state to another person and that transfer or disposal is not for a valid commercial or other non-fiscal reason which reflects economic reality, this would be considered an arrangement to obtain a Corporate Tax advantage under Clause (1) of Article 50 of the Corporate Tax Law.

Article 4 - Requirement to Register for Corporate Tax

A Non-Resident Person that has a nexus in the State in accordance with Article 2 of this Decision shall be required to register with the Authority in accordance with Article 51 of the Corporate Tax Law

Article 5 - Implementing Decisions

The Minister shall issue the necessary decisions to implement any of the provisions of this Decision.

Article 6 - Publication and Application of this Decision

This Decision shall be published in the Official Gazette and shall come into effect on 1 June 2023.