background image
3.1. Corporate Tax Residence

There is no federal tax law. Each of the 7 Emirates forming the UAE has its own Tax Decrees. All are based on the territoriality principle and contain no definition of residence. Persons are theoretically liable to profit tax in the relevant Emirate if the derive through a trade or business, including a branch or an agent, income arising therein. In practice, tax is levied only on banks and oil companies.