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United Arab EmiratesVAT & Corporate TaxUpdated: Sep 13, 2026
Validation Pending: The capabilities described for United Arab Emirates are currently under review. Prefiler does not yet offer production-validated automated pre-filing intelligence for this jurisdiction.
Direct Answer
A UAE resident company can make an irrevocable election to exempt the profits of its foreign branches from UAE Corporate Tax. Without this election, foreign branch profits are taxable, though you can claim a Foreign Tax Credit for taxes paid overseas.
The Exemption Election
If you have a branch in Saudi Arabia, its profits are generally included in your UAE taxable income. If you choose the exemption, you must exclude the branch revenues and expenses from your UAE tax computation.
Permanent Establishment Risk
If a foreign company has a branch in the UAE, the UAE branch is considered a Permanent Establishment (PE) and is subject to the standard 9% Corporate Tax on its UAE-sourced income.