What is the meaning of “permanent establishment” of a German company in the UAE?
The term permanent business establishment is defined in legal terms in the DTA. This business establishment has to be permanent and perform the activities of the company either partially or completely. A permanent place of business can also be a mine or oil or gas facility or any other mineral exploitation facility. Construction work or assembly site is considered a permanent business establishment if its duration does not exceed nine calendar months. The remaining particulars of the definition of the term permanent business establishment should not be explained here. Insofar as a German company carries out its business activities in the UAE through a permanent business establishment residing locally, the profits earned there are subject to UAE taxation laws. The current taxation according to the tax laws of the UAE results in a tax rate of 0%, as long as the permanent business establishment is not a bank or company directly dealing with the production of oil, gas, and petrochemical pr
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