Many business owners setting up branches in the UAE often ask whether they require a separate registration for corporate tax in Dubai. The answer depends on how the branch is connected legally to the main entity.

Do Branches Require Separate Registration? — NO (In Most Cases)

If the branch operates under the same trade license and the same legal entity, then:
• No separate corporate tax in Dubai registration is required
• Income of the branch and the main company is combined
• Only one Corporate Tax Registration Number (TRN) is used

When Is a Deeper Tax Evaluation Required?

A detailed review becomes essential when:
• The company is part of a Multinational Enterprise (MNE)
• The branch involves cross-border activities
• Transfer pricing rules may apply
• The branch qualifies as a Permanent Establishment
• Transactions occur with related parties in other countries

In such situations, the evaluation must consider:
• Whether the branch operates independently
• How profits are allocated
• Whether UAE tax residency rules apply
• Whether related-party pricing follows compliance standards

Final Advice

For most local UAE companies, branches do not need separate registration for corporate tax in Dubai.
However, multinational structures should undergo a professional tax evaluation to avoid compliance issues, penalties, or double taxation.

Fuad House can conduct a complete tax review to ensure your business meets all FTA requirements.

Disclaimer

This blog is published by Fuad House Tax & Management Consultancy for informational purposes only. It does not constitute professional tax advice and should not replace a tailored consultation. Corporate Tax implications vary depending on your business structure, sector, and whether you operate in a Free Zone or mainland. For personalized and reliable guidance, please contact a qualified UAE tax consultant.

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