Permanent Establishment (PE) Advisory Services in Dubai, UAE
Expanding your business internationally or engaging in cross-border activities can unintentionally trigger a Permanent Establishment (PE) in another jurisdiction—leading to unexpected tax obligations.
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What is a Permanent Establishment?
A Permanent Establishment (PE) is a fixed place of business through which a foreign company conducts significant business activities in another country. If your business has a PE in a foreign country (or a foreign business has a PE in the UAE), that portion of income may become taxable in that jurisdiction.
Our specialists offer strategic insights based on OECD guidelines, UAE Corporate Tax laws, and global double taxation agreements, helping you structure operations smartly and avoid surprises.
Our PE Advisory Services Include
PE Risk Assessment
We conduct a thorough analysis of your business structure, contracts, activities, and presence in foreign jurisdictions to determine any potential PE exposure.
Business Structuring
Our team designs tax-efficient business structures that reduce or eliminate the risk of creating a PE in foreign countries or the UAE.
UAE PE Guidance Compliance
We align your operations with the OECD Model Tax Convention, BEPS action plans, and UAE Corporate Tax Law to ensure international compliance.
Tax Filing and Disclosure Strategy
If PE exists, we help manage local tax filing requirements, income allocation, and documentation to stay transparent and minimize penalties.
Documentation Review
Our advisors review agency contracts, service agreements, and employment arrangements to identify clauses that may unintentionally trigger PE.
Establishing a business in Dubai involves a specific procedure.
Frequently Asked Questions
What exactly creates a Permanent Establishment (PE)?
PE can be triggered by a fixed place of business, long-term contracts, dependent agents, or project-based presence in another country. Even digital presence can sometimes result in PE risk.
Can a remote employee trigger a PE?
Yes. If a remote worker habitually negotiates or signs contracts on behalf of your company, it can establish PE in their country.
What are the consequences of having a PE?
The foreign jurisdiction may require corporate tax filings, income attribution, and penalties for non-disclosure or late payment.
Is PE risk relevant under UAE Corporate Tax?
Yes. With the introduction of UAE Corporate Tax, foreign companies operating in the UAE must evaluate whether their activities amount to a PE under UAE law.