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Dubai Fact-File Part 2:
Individual Business Domestic Taxation

2.2 Dubai Permanent Establishment

The OECD convention covering a Permanent Establishment applies to companies set up in Dubai. The definition requires that, to be classified as a Permanent Establishment, a business must be either:

  • A place of management;
  • A branch;
  • A factory;
  • A workshop;
  • A construction site with a project that will last more than 12 months.

 

A business will not be classified as a Permanent Establishment if it has premises used only for storage and movement of goods, or on behalf of another entity. A Permanent Establishment must have a manager or director present in the jurisdiction and resident in Dubai for at least 51% of the year and a manager or director so nominated must also have a residence in Dubai in their own name. Failure to comply could mean the loss of tax-free status and any other benefits enjoyed by offshore enterprises.
 

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

 

Fact-File

Part 1: Dubai Business Formation for Individuals

  1. Dubai Individual Business Structures
  2. Dubai Individual Business Registration
  3. Dubai Individual Business Registration Cost
  4. Dubai Individual Business Licensing
  5. Dubai Foreigners in Business
  6. Dubai Business Organisations
  7. Dubai Business Accounting
  8. Dubai Family Business Ownership
  9. Dubai Venture Capital
  10. Dubai Individual Business Franchises

Part 2: Dubai Individual Business Domestic Taxation

  1. Dubai Individual Business Tax Residence Rules
  2. Dubai Permanent Establishment
  3. Dubai Individual Income Tax Rates and Bands
  4. Dubai Personal Allowances and Business Deductions
  5. Dubai Husband and Wife Partnerships
  6. Dubai Partnership Income Taxation
  7. Dubai Limited Companies Income Taxation
  8. Dubai Business Profit Retention
  9. Dubai Business Losses
  10. Dubai Value Added Tax (VAT)
  11. Dubai Individual Business Capital Gains Tax (CGT)
  12. Dubai Individual Artists Royalties
  13. Dubai/Dubai Individual Business Tax-Efficient Profit Distribution

Part 3: Dubai Individual Business International Taxation

  1. Dubai Individual Business International Tax Liability
  2. Dubai Individual Business Withholding Taxes
  3. Dubai Double Tax Treaties

Part 4: Dubai Individual Business Tax-Efficient Structures

  1. Dubai Individual Business Trusts and Foundations
  2. Dubai Individual Business for Non-Residents
  3. Dubai Individual Business use of Offshore
  4. Dubai Controlled Foreign Corporation (CFC) Rules
  5. Dubai Personal Estate and Inheritance Planning

Part 5: Dubai Small Business Incentive Programs

  1. Dubai Small Business Support Schemes
  2. Dubai Training Incentive Schemes
  3. Dubai R&D Tax Credits
  4. Dubai Individual Business Tax Holidays

Part 6: Dubai Individual Business Employment Issues

  1. Dubai Individual Business Employer Responsibilities
  2. Dubai Employment vs Self-Employment Tax Issues
  3. Dubai Apprenticeship and Work Experience Schemes
  4. Dubai Employee Dismissal Rules
  5. Dubai Business Owner Employment and Invoicing Rules

Part 7: Dubai Business Owner Welfare and Lifestyle

  1. Dubai Business Social Security
  2. Dubai Business Domestic Pensions
  3. Dubai Offshore and International Pensions
  4. Dubai Individual Business Healthcare
  5. Dubai Individual Business Banking Services
  6. Dubai Education
  7. Dubai Individual or Business Leaving Dubai
  8. Dubai Domestic Real Estate
  9. Dubai International Real Estate