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Short answers to common questions
The international tax questions our clients ask most. Each answer takes a few minutes to read and shows when it was last reviewed.
Residence and moving
How do I become tax resident in the UAE?
Since 1 March 2023, an individual is UAE tax resident on any one of three tests: 183 days, 90 days with residence status and ties, or a main home and centre of interests in the UAE.
When do I need a UAE tax residence certificate, and how do I get one?
A UAE tax residence certificate confirms you are UAE resident, mainly so a tax treaty can be relied on. Who can apply, the evidence needed, the fees and the period covered.
Two countries say I'm tax resident. Which one wins?
When two countries both treat you as resident, a tax treaty's tie-breaker tests decide, in a fixed order: permanent home, centre of vital interests, habitual abode, then nationality.
Can I be tax resident nowhere, and is that a problem?
It can happen when you leave one country before you qualify in another. It often causes practical problems with treaties, residence certificates and bank forms.
I've moved to Dubai. Why does my old country still say I'm resident?
Each country applies its own residence tests. Becoming UAE resident does not end residence elsewhere, though a tax treaty may decide which country wins.
Does my home country have an exit tax when I leave?
Some countries tax gains on shares when you stop being resident, even if you have not sold them. Norway and the Netherlands are two examples. Check before you move.
What counts as a permanent home for tax treaty purposes?
Under the OECD model, a permanent home is any dwelling, owned or rented, that is kept for your use and available to you continuously. Short stays do not count.
How many days can I spend in my old country after I move?
There is no single safe number. It depends on your old country's own tests, and ties such as a home or family can matter more than days. Keep a day diary.
Which countries does the UAE have tax treaties with, and why does it matter?
The UAE Ministry of Finance says the UAE has concluded 137 double taxation agreements. A treaty can settle dual residence, cap withholding tax and give relief.
Business structures
Where is my company taxed if I run it from another country?
A company isn't necessarily taxed only where it is registered. Many countries tax a company where it is managed, so a company run from abroad can end up taxed in two places.
Should my holding company be in the UAE, Cyprus, Singapore or elsewhere?
There is no single best place. Compare treaties, tax on dividends and disposals, withholding on payments out, substance, where the owners live, and banking.
What does substance actually mean for my company?
Substance means your company really operates where it says it is based: people, premises, decisions and activity there. It affects residence, treaty claims and low-tax regimes.
Can I run my overseas company from Dubai without it becoming UAE taxable?
Often not. UAE law treats a foreign company effectively managed and controlled in the UAE as resident, and a Dubai office or agent can also create a permanent establishment.
What is a permanent establishment, and could my business have one abroad?
A permanent establishment is a taxable presence in another country, usually through a fixed place of business, a dependent agent or a long construction project.
Moving my company's management to Dubai: what changes?
Your company may become UAE resident for corporate tax and need to register with the FTA, while the country it leaves may tax it on exit or keep claiming it.
Wealth and family structures
Trust, foundation or company: how is each taxed and reported?
Each splits ownership, control and benefit in a different way, so tax authorities and CRS treat them differently. The tax result depends on where each family member lives.
What happens to my offshore company when I move countries?
Your new country may tax you on the company's income, the company may become resident where you now manage it, and CRS reports will follow you to your new home.
Is my 20-year-old offshore structure still fit for purpose?
Possibly not. Since the 2000s, CRS, beneficial ownership registers, substance rules and treaty anti-abuse tests have changed how old structures are taxed and reported.
Who is reported as the owner of my company or structure?
Under CRS, banks report the people behind many companies and structures, not only the entity. For companies that usually means owners of more than 25%; for trusts, everyone in the key roles.
Does a private structure still get reported to tax authorities?
Yes. Keeping a structure out of public view and reporting it to tax authorities are different things. The people behind it are reported to their own countries.
My children live in different countries: how does that affect a family structure?
Each child's country taxes what they receive in its own way, and CRS reports each child to their own country. The structure has to work for every country involved.
Reporting and transparency
What does CRS report about me, and to whom?
Under the Common Reporting Standard, banks report your accounts each year to their tax authority, which passes them to the country where you are resident. Companies and trusts don't necessarily keep you out of it.
My bank sent me a CRS self-certification form. What do I put?
List every country where you are tax resident under its own rules, with a tax number for each. The bank checks your answer against its records, so it must be accurate.
Is my company a passive entity under CRS?
A company is usually passive if half or more of its income is passive, or half or more of its assets produce such income. The bank then reports the people who control it.
Does Dubai residence stop my old country receiving my bank data?
Banks report to the countries where their checks show you are resident. Old addresses or phone numbers can keep your old country on the list until you update your file.
What is reported about a trust or foundation under CRS?
It depends on whether the trust or foundation is a financial institution or a passive entity. Either way, settlors, trustees, protectors and beneficiaries can be reported.
Can I be reported to two countries at once?
Yes. If you are resident in two countries, or your bank finds signs of residence in two, it can report you to both. You fix a wrong report by updating your form and evidence.
UAE companies
Do I need to register my UAE company for corporate tax?
Yes. Every UAE company, including free zone companies, must register for corporate tax, even if no tax is due. New companies have three months from incorporation.
Who qualifies for the 0% free zone rate?
A free zone company gets 0% on qualifying income only if it meets every condition, including real substance, audited accounts and transfer pricing rules. Other income is taxed at 9%.
How is an international trading business taxed in a UAE free zone?
It can pay 0%, but general trading is not itself a qualifying activity. Sales to other free zone companies can qualify for 0%. Sales to mainland or foreign buyers need a qualifying activity.