Do branches of foreign companies pay corporate tax in the UAE?

A foreign company that operates in the UAE through a branch or other permanent establishment is generally a non-resident taxable person for corporate tax purposes, and the income attributable to that UAE permanent establishment is subject to UAE corporate tax at the standard rates — 0% on the first AED 375,000 of attributable taxable income and 9% above that. The branch must register with the Federal Tax Authority and file returns covering its UAE-source business profits. A UAE branch of a UAE company is treated as part of the same legal person rather than a separate taxable person. Whether a foreign company has a taxable presence depends on having a fixed place of business or a dependent agent in the UAE, as defined in the corporate tax law. Non-residents may also be taxed on certain UAE-sourced income even without a permanent establishment, subject to the rules and any applicable double tax treaty. Because permanent establishment and treaty questions are technical, confirm your branch's position with the FTA or a qualified UAE tax adviser. Verified UAE legal professionals are listed on LEXAI.