Does incorporating in the UAE exempt me from paying tax in the UK?

Many directors assume that incorporating a company in the UAE shields them from UK tax obligations. This is a dangerous misconception. We explain how HMRC’s Statutory Residence Test (SRT) and Significant Economic Presence rules can override your corporate domicile, turning a foreign entity into a UK-resident taxpayer based on where decisions are actually made.

Dubai’s tax reality and why zero income tax is not a blank cheque.

The statutory reality: no personal income tax The primary draw of Dubai remains its statutory tax regime for individuals. The United Arab Emirates does not levy personal income tax, capital gains tax, or wealth tax on residents. For an employee earning a salary in Dubai, the entire gross amount is effectively net pay, provided no […]

Corporate tax and qualifying for free zone status.

The UAE’s federal corporate tax regime requires businesses to navigate strict substance rules, qualifying income tests, and compliance costs to retain zero liability or access small business relief.

Do I need to pay UK tax if I move to Dubai?

Non-UK residents generally don’t pay UK tax on foreign income, but UK-source income remains taxable. Day-count rules under the Statutory Residence Test must be carefully managed.

What are the tax obligations for a UK business with operations in Dubai?

UAE has 9% Corporate Tax on profits above AED 375,000 (from June 2023). UK residents must still declare Dubai income in the UK. The UK-UAE double tax treaty prevents double taxation.

Can a UK company set up a branch or subsidiary in Dubai?

Yes — UK companies can set up a Dubai branch or Free Zone subsidiary. Free Zones offer 0% tax on qualifying income and 100% foreign ownership. Specialist advice on structure is essential.

What is the Remittance Basis and who can use it?

The Remittance Basis taxed non-doms only on foreign income brought to the UK. From April 2025, it is replaced by the 4-year FIG regime for new UK residents. Specialist advice is strongly recommended.

Bookkeeping

Accounting and bookkeeping are important, but they don’t have to be a hassle.

Property

We’re highly experienced in all aspects of landlord accounting, such as landlord bookkeeping, filing annual property accounts and landlord tax returns.

Partnerships

Our team understands that your time is your most valuable asset, which is why we offer a comprehensive range of accounting services for partnerships.

Foreign Income

We help those who reside in and are domiciled in the United Kingdom to pay income and capital gains tax on their worldwide income and gains.

VAT

VAT is complex and demanding — so complicated most businesses accidentally overpay or underpay. We can help.