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Permanent Establishment

Fixed Place PE

 
  • Fixed or permanent place in the UAE through which Non-Resident (‘NR’) person wholly or partly conducts business
  • Place of management / branch / office / factory, building site (+6 months) etc. (subject to the fixed place of business requirements)

 

Excludes certain business activities:

  • Preparatory or auxiliary e.g. delivery and storage of goods / collecting information (subject to anti-fragmentation rule)

 

Other exclusions:
 
  • A natural person’s presence is temporary and exceptional* 
  • An employee conducts non-core income generating activities and NR does not have UAE sourced income

 

Dependent Agent PE

  • Person habitually concludes contracts on behalf of the NR
  • Person habitually negotiates contracts which are concluded by the NR without material modification Excludes an independent agent acting in the ordinary course of business.
  • Excludes an independent agent acting in the ordinary course of business.

Not independent if the agent: 

  • acts exclusively or almost exclusively for the NR
  • is not legally or economically independent from the NR
     

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Page last updated: : May 06, 2024
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