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UAE Tax Planning

Is there a Double Taxation Treaty between Georgia and the UAE?

Yes, there is an active Double Taxation Avoidance Treaty between Georgia and the UAE, which helps prevent businesses and individuals from paying tax on the same income in both countries.

Can I run a UAE company from Georgia tax-free?

Not necessarily. If you manage a UAE company effectively from Georgia, it might be considered a Georgian tax resident entity. Proper structuring is required to avoid this risk.

What is a Tax Residency Certificate?

It is an official document issued by the Revenue Service proving your tax residency, which is required to claim benefits under the DTT in the other country.

Do I pay tax in Georgia on income earned in Dubai?

It depends on the type of income. Passive income might be taxed, while active income earned from foreign sources while not being a Georgian resident might be exempt. Professional advice is needed.

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Economic relations between Georgia and the United Arab Emirates (UAE) have deepened significantly in recent years, prompting businesses to seek efficient utilization of tax systems in both jurisdictions. Georgia-UAE tax planning involves complex legal and financial strategies aimed at optimizing tax burdens while ensuring full compliance with international laws. Since the UAE recently introduced corporate tax, effectively changing its tax landscape, correct analysis of Double Taxation Avoidance Treaties and local incentives has become critically important for businesses. This service is particularly relevant for international trading companies, the IT sector, and investors operating in both countries.

Proper tax planning requires not only knowledge of the Tax Code of Georgia but also a deep understanding of UAE tax regulations and international agreements. Legal.ge allows you to connect with qualified tax lawyers who will assist in correctly structuring cross-border operations.

What Does This Service Cover?

The Georgia-UAE tax planning service covers a wide range of legal and tax consultations tailored to businesses operating between the two jurisdictions. Specialists offer:

  • Double Taxation Treaty (DTT) Analysis: Applying the provisions of the agreement between Georgia and the UAE to reduce or eliminate withholding taxes on dividends, interest, and royalties.
  • Corporate Structuring: Creating an optimal structure of holding and operating companies (e.g., Georgian LLC and UAE Free Zone company) to increase tax efficiency.
  • Tax Residency Determination: Establishing the tax residency status of individuals and legal entities and assessing risks related to the Place of Effective Management.
  • Transfer Pricing Consultation: Setting prices for transactions between related parties in accordance with arm's length principles to avoid penalties in both countries.
  • VAT and Import Tax Planning: Optimizing tax liabilities arising during the import/export of goods and services.
  • Repatriation Strategies: Developing the most effective ways to repatriate profits with minimal tax leakage.

Common Scenarios

In practice, we often encounter situations where businesses require professional tax assistance:

  • IT Company Expansion: A Georgian IT company wants to open a representative office or HQ in Dubai to be closer to clients but wishes to retain Georgia's "Virtual Zone" benefits for the development part.
  • Trading Operations: A company imports goods from China via the UAE to Georgia and needs optimization of the logistical and tax chain to prevent double taxation.
  • Investor Residency: A Georgian citizen owns real estate and business in Dubai and needs to know where to pay tax on the income received and how to avoid paying tax in both countries.
  • Consulting Services: A Georgian expert provides services to a UAE-registered company and needs to determine if this income qualifies as tax-exempt (foreign source) in Georgia.

Georgian Legal Framework

Legal services in this field rely on Georgian legislative acts and international agreements. Primarily, the Tax Code of Georgia governs residency, source of income, and tax rates. A critically important document is the "Agreement between the Government of Georgia and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital." This international treaty regulates which country has the priority right to tax specific income.

Additionally, the Law on Entrepreneurs of Georgia is relevant for registering corporate structures, and the Customs Code of Georgia for trading operations. Specialists also consider international standards on Base Erosion and Profit Shifting (BEPS), to which Georgia is a party.

Service Process

Working with a specialist on Legal.ge involves the following stages:

  1. Initial Audit and Analysis: The lawyer studies the client's business model, income streams, and existing structure in both jurisdictions.
  2. Strategy Development: Based on the DTT and local legislation, a tax optimization plan is developed, including specific recommendations on structure and transactions.
  3. Documentation Preparation: Arranging contracts, invoicing policies, and Tax Residency Certificates in compliance with requirements.
  4. Implementation and Monitoring: Implementing the new structure and periodically reviewing it in light of legislative changes.

Why Choose Legal.ge?

Legal.ge is the leading platform in Georgia, giving you access to verified and licensed tax lawyers. Through our platform, you can find specialists with deep expertise in international tax law and specific experience working with the UAE. Experts listed on Legal.ge ensure that your business is protected, compliant, and financially efficient.

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