German companies can set up a business in Dubai to partially shift their tax burden to the Arab Emirates. However, various provisions of international tax law must be observed, as Germany has not concluded a double taxation agreement (DTA) with the United Arab Emirates at the moment (2024). Corresponding profits therefore sometimes remain taxable in Germany.
1st principle: Treatment of a permanent establishment in Dubai under German law
When a permanent establishment exists in Dubai under German law is determined in accordance with § 12 AO. The existence of a permanent establishment usually requires that in the respective state (here the UAE)
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.