Non-resident company with a UAE permanent establishment
My Indian company has staff working in Dubai on projects. Do we need UAE Corporate Tax registration?
The situation
A foreign company with a permanent establishment in the UAE is a taxable person on income linked to it and must register.
The law
- Art 14, Federal Decree-Law 47 of 2022: Permanent establishment of a non-resident
- Art 51, Federal Decree-Law 47 of 2022: Taxable persons must register in the form and timeline the FTA sets
What it means for you
A fixed place of business or a dependent agent habitually concluding contracts here can create a permanent establishment. Example: two engineers based in Dubai for 10 months running client work may create one. The India-UAE tax treaty can also matter; the India side is for the India team. Get the facts written before registering.
What to do
- List UAE activities, people and duration.
- Test the permanent establishment rules and the treaty.
- Register if a permanent establishment exists.
- Track the income linked to it.
Check the exact non-resident registration deadline in FTA Decision 3 of 2024 before filing.
We can do this for youCorporate Tax registration on EmaraTax for companies, free zone entities, non-residents and individuals in business: AED 2,250