What are the benefits of the DTA for German companies?
The DTA specifies that profits of a company residing in Germany are only subject to taxation by the UAE as long as the German company’s activities in the UAE is carried out by a local permanent business establishment. If the German company does not have a permanent business establishment in the UAE, the profits earned by the German company in the UAE continue to be subject to German taxation. The existence of a permanent business establishment of a German company in the UAE is thus the decisive factor for the question whether the profits of the German company earned by operating in the UAE will be subject to German or UAE taxation.
