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When One Day Makes All the Difference: Documents and Proving Tax Residency

Information Notice

United Kingdom

In May 2026, a decision was issued regarding an individual’s application of the Statutory Residence Test in the United Kingdom [1]. This test is highly formalised and is based on the number of days the applicant spent in the country, their work activity, and other objective factual circumstances. Subjective and evaluative factors are generally considered insufficient to pass the test.

As the key element of the Statutory Residence Test is the count of the number of days an individual spends in the United Kingdom, HM Revenue & Customs (HMRC) paid particular attention to this issue. An individual was close to the threshold for being recognised as a UK tax resident, having spent 89 days in the country (tax residency in this case arises if 90 days or more are spent in the UK). HMRC challenged the treatment of several days for tax residency purposes, arguing that the individual had in fact spent 93 days in the United Kingdom. The treatment of these days was successfully defended on the following grounds:

  • 3 days under the transit exemption

During each transit stop, the individual’s actions were consistent with the ordinary behaviour of a passenger in transit: after arriving at Heathrow, they stayed at a hotel near the airport, arranged transportation between the airport and the hotel, had meals, and flew to another country the following day. They did not work in the UK during this time, nor did they visit the city, use their stay in the UK as a separate purpose of the trip, or meet with friends. Meetings with family members were connected with subsequent flights, during which the family travelled together.

Booking a journey as a single ticket or as separate tickets for each leg made no difference in determining transit status. Using Heathrow as a transit point was cheaper and more convenient from a logistical perspective.

  • 1 day due to exceptional circumstances

After boarding the aircraft at Heathrow, the airport was closed and the flight was cancelled due to a storm. Many flights were cancelled or significantly delayed that day.

Passengers were asked to leave the aircraft. Their luggage remained with the airline, which arranged hotel accommodation, meals and transfers, and offered to reschedule departure for the following day once weather conditions had stabilised.

The court recognised these circumstances as exceptional and considered the individual’s actions reasonable and sufficient under the circumstances. They were not expected to disregard the airline’s decisions, attempt to find an alternative route on the same day given the severe weather disruption and large number of cancelled flights, or leave their luggage at the airport.

The individual departed the United Kingdom as soon as objective circumstances allowed.

The successful outcome of the litigation was possible because the individual was able to provide documentary evidence supporting his position. In communications with the tax authorities and in court, having high-quality documentation available is often a decisive factor.

Russian Federation

In Russia, tax residency issues (183+ days within any period of 12 consecutive months) are also actively reviewed by the tax authorities, and the list of supporting documents remains open-ended.

In practice, the following items are commonly used as evidence:

  • Passport entry and exit stamps
    • Employment agreements
    • Timesheets
    • Copies of airline and railway tickets
    • Expense reports
    • Travel logs
    • Records from property management companies relating to utility charges
    • Responses from the Federal Security Service (FSB) and the Ministry of Internal Affairs
    • Agreements with healthcare institutions for treatment or educational institutions for study
    • Certificates issued by healthcare or educational institutions confirming treatment or education during specific periods

Where an individual relies on treatment or education as grounds for not interrupting tax residency status, it is also necessary to demonstrate that the services were provided by an entity legally authorised to do so under the laws of the relevant jurisdiction, and that treatment or education was indeed the primary purpose of the trip, rather than something optional or ancillary.

The tax authorities closely review medical reports and doctors’ recommendations, whether the patient complied with prescribed treatment, participation in activities unrelated to treatment or study (such as entertainment), dates of travel, dates of medical appointments, and the completion of treatment.

Information contained in the documents must be clear, consistent, and match up with explanations and information previously provided to the tax authorities. The more documents are available to support a particular fact, the stronger the taxpayer’s position.

Tax residency rules may also be adjusted through the application of international double tax treaties. Compliance with the relevant treaty criteria in a specific case must also be supported by documentary evidence.

United Arab Emirates

In the UAE, merely holding a residence visa, Emirates ID, or owning a registered company does not guarantee that an individual will be recognised as a tax resident for international tax purposes or for the application of double tax treaties.

Tax residency criteria in the UAE are established by law. Under Cabinet Resolution No. 85 of 2022 on Determination of Tax Residency, the following circumstances are among those that qualify an individual as a UAE tax resident:

  • Presence in the UAE for 183 days or more over a period of 12 consecutive months
  • or
    • Presence in the UAE for 90 days or more while holding a residence visa or right of residence and maintaining sufficient connection to the UAE (for example, permanent accommodation, employment, or business in the UAE)

Additionally, the legislation refers to the individual’s centre of personal and economic interests in the UAE.

To obtain a Tax Residency Certificate (TRC) in the UAE, applicants must submit a standard set of documents demonstrating ties to the UAE. In practice, these usually include:

  • Emirates ID and residence visa
    • Immigration entry and exit records
    • Residential lease agreement or property ownership documents
    • DEWA/utility bills
    • UAE bank account statements
    • Proof of income or economic activity in the UAE

However, in practice foreign tax authorities, banks and counterparties often examine not only whether a TRC has been issued, but also the individual’s actual living circumstances.

In such situations, additional factors are commonly reviewed:

  • Actual number of days spent in the UAE
    • Availability of permanent accommodation
    • Location of family residence
    • Centre of personal and economic interests
    • Actual business activity and work performed from the UAE
    • Nature and duration of travel to other jurisdictions
    • Consistency between documentation and the taxpayer’s conduct

In practice, particular emphasis is placed on actual physical presence and a genuine connection to the UAE (substance).

For example, questions may arise if an individual:

  • Spends only limited time in the UAE
    • Continues to actively conduct business in another jurisdiction
    • Maintains their primary home and family outside the UAE
    • Cannot document ordinary day-to-day life in the UAE

In international tax disputes, the following may become particularly relevant:

  • Travel history
    • Banking activity
    • Use of real estate
    • Children’s school attendance records
    • Medical and insurance records
    • Employment records
    • Corporate documents
    • Other evidence demonstrating the individual’s actual centre of life

Recommendations

If you are planning extensive international travel, we recommend the following:

  • Make sure that you retain all documents that may be evidence that you have spent time in a particular country, and make copies of important documents where necessary (for example, the print on receipts may fade over time). Tax authorities carefully review documentation and may request information from other authorities, individuals and even foreign jurisdictions
    • Review documents received from third parties and assess whether they affect the evidence of your tax residency. If inconsistencies are identified, request amendments so that documents accurately reflect the factual circumstances (for example, whether they clearly indicate dates of treatment or study)
    • Bear in mind that holding a formal tax residency certificate (for example, a UAE TRC) does not rule out questions from tax authorities, who may still require additional factual substantiation
    • Pay close attention to passport stamps, especially when travelling through e-gates using biometric identification
    • Carefully monitor the number of days spent in each jurisdiction and analyse in advance the tax consequences of extended travel and remote work from abroad
  • If the day-count is getting close to the relevant threshold, be particularly careful in gathering supporting evidence. Even the treatment of a single day may ultimately determine your overall tax burden
    • Consider using an application to independently track your tax residency status

This client alert was prepared byMaria Rybitskaya, Partner and Head of Tax Practice at Asari Legal, and Ivan Laskov, Partner at Asari Legal.

[1] https://www.iclr.co.uk/document/2026003699/2026ukftt652tc_TNA/html