Australia and the UAE signed a major economic agreement recently, and a great many articles have quietly upgraded that into a tax treaty. It is not one, and the difference costs Australian founders real money.
There is no double taxation agreement between Australia and the UAE. Australia does not appear on the UAE Ministry of Finance list of avoidance of double taxation agreements [1], and no negotiations toward one have been publicly announced [2].
There is a trade agreement. The Australia UAE Comprehensive Economic Partnership Agreement, together with an agreement on the promotion and protection of investments, entered into force on 1 October 2025, following signature on 6 November 2024 and the conclusion of negotiations on 17 September 2024 [2].
Those two facts pull in different directions. CEPA helps if you move goods or capital. It does nothing about your personal tax position. And the absence of a tax treaty removes the tie-breaker an Australian tax resident would ordinarily rely on, which matters more than usual because Australia's residency rules are notoriously difficult to leave behind.
Since 2013, BusinessDubai.ae has handled UAE company formation for founders relocating from Australia and elsewhere. This guide covers the UAE side properly, prices it in AED, and is direct about the one question you should answer in Australia before you spend a dirham here.
What does the absence of a tax treaty actually mean?
Short answer: no residence tie-breaker, no treaty relief on double taxation, and no reduced withholding rates, which together make the Australian side of your position the thing to solve first.
When two countries have a double taxation agreement it does two useful things. It allocates taxing rights over particular categories of income, and it usually contains a tie-breaker for a person who could be treated as resident in both places.
Without one, both are gone.
| What a treaty normally gives you | Position between Australia and the UAE |
|---|---|
| Residence tie-breaker where both countries claim you | None. Your position rests entirely on Australian domestic law [1] |
| Allocation of taxing rights by category of income | None. Each country applies its own rules |
| Relief from double taxation by treaty mechanism | None. You rely on Australia's domestic foreign income tax offset rules |
| Reduced withholding on dividends, interest and royalties | None, because there is no treaty containing the rates |
| A mutual agreement procedure for disputes | None |
This does not make Dubai a bad choice for an Australian. Plenty of Australians run successful UAE companies. It makes it a choice you must take Australian advice on, before you incorporate rather than after.
The common and expensive assumption is that a UAE company plus a UAE residence visa ends an Australian tax position. It does not automatically do so, and without a treaty there is no shortcut to arguing otherwise. Where a British or Singaporean founder in the same situation could at least point to a tie-breaker article, you cannot.
Common Mistake: Reading that Australia and the UAE now have a comprehensive agreement in force and concluding that double taxation is handled. CEPA is a trade and investment agreement. It contains no tie-breaker, no allocation of taxing rights over your income and no withholding relief [2]. We have had this exact conversation with founders who had already moved.
We are not Australian tax advisers and will not pretend to be. What we will say is that this is the single most important question for an Australian founder considering Dubai, and it should be answered by someone qualified in Australia first.
Want the UAE half priced and sequenced while you take that advice at home? Talk to a setup expert→
What does CEPA actually give you?
Short answer: better tariff treatment on qualifying goods and real investment protections, and nothing whatsoever on income tax.
The Australia UAE Comprehensive Economic Partnership Agreement entered into force on 1 October 2025 [2]. It is a genuine instrument with real effect, and it sits alongside an agreement on the promotion and protection of investments [2].
| Where CEPA helps | Where CEPA does nothing |
|---|---|
| Goods traders, through improved market access and tariff treatment on qualifying goods | Your personal tax residence |
| Investors, through the accompanying promotion and protection of investments agreement | Double taxation of your income |
| Services and market access within the agreement's scope | Withholding tax rates |
| Certainty of timing, since it is in force rather than pending | Whether the ATO regards you as resident |
If you are an Australian exporter or importer, CEPA is a real reason to look at a UAE entity, and the timing is favourable because it is in force rather than awaiting ratification. If you are a consultant or a software founder moving primarily for tax reasons, CEPA is close to irrelevant to your actual question.
Real Talk: The distinction that matters is whether you move goods or move yourself. CEPA is written for the first. Nothing in it addresses the second, and the second is what most people asking about Dubai are really doing. If an adviser cites CEPA when you asked about your personal tax position, they have answered a different question.
Free zone, mainland or offshore?
Short answer: free zone if your customers are outside the UAE, mainland if they are inside it, and offshore only for holding rather than trading.
The choice is decided by who pays your invoices, not by which option sounds most efficient on a comparison page.
| Structure | Best fit | Watch for |
|---|---|---|
| Free zone | Selling outside the UAE, international clients, technology, consulting, media, trading for re-export | Qualifying Free Zone Person conditions are strict; selling to UAE consumers or into the mainland is generally excluded activity |
| Mainland | Invoicing UAE customers directly, government work, premises the public enters | Tenancy or Ejari required, which drives the cost base |
| Offshore | Holding assets, group structures, intellectual property, precious metals holding | Not a trading licence, and it does not sponsor residence visas |
The free zone 0% is conditional rather than automatic. Qualifying Free Zone Person status requires substance and activity conditions plus audited financial statements, and selling to UAE consumers or into the mainland is generally an excluded activity that removes it. A large number of free zone companies are ordinary taxable persons on the standard regime instead, which is 0% then 9%, not 0% flat.
Our free zone company setup and mainland company setup pages price both operating routes, offshore company formation covers holding structures, and the free zone versus mainland comparison sets out where the boundary falls. If CEPA-driven goods trade is your model, our Resolution 11/2025 guide covers mainland access from a free zone entity.
Cost is also an emirate decision rather than only a structure decision. If the business does not need a Dubai address to function, licence and premises costs in the northern emirates are materially lower, and our Sharjah business setup page covers an option Australian founders rarely consider because nobody tells them the UAE is seven emirates rather than one city.
Pro Tip: Decide the Small Business Relief question and the Qualifying Free Zone Person question together, because they are mutually exclusive. A free zone company chasing QFZP status cannot elect Small Business Relief, and QFZP brings audited accounts and activity conditions with it. Below AED 3,000,000 of revenue the elected relief usually produces the same nil result with far less machinery attached.
What tax will the UAE company pay?
Short answer: nothing under Small Business Relief up to AED 3,000,000 of revenue, and otherwise 0% on the first AED 375,000 of taxable income with 9% above it.
| Taxable income (AED) | Tax at 0% band | Tax at 9% | Total tax (AED) | Effective rate |
|---|---|---|---|---|
| 375,000 | 0 | 0 | 0 | 0% |
| 500,000 | 0 | 11,250 | 11,250 | 2.25% |
| 1,000,000 | 0 | 56,250 | 56,250 | 5.63% |
| 2,000,000 | 0 | 146,250 | 146,250 | 7.31% |
| 5,000,000 | 0 | 416,250 | 416,250 | 8.33% |
| 10,000,000 | 0 | 866,250 | 866,250 | 8.66% |
The AED 375,000 band works as a permanent deduction rather than a threshold that disappears, so the effective rate climbs toward 9% without ever arriving there [4].
Small Business Relief is available where revenue is at or below AED 3,000,000, treating the company as having no taxable income on election. Ministerial Decision No. 131 of 2026 extended this to tax periods ending on or before 31 December 2029, from a previous cut-off of 2026 [5]. The threshold applies to the current tax period and all previous ones, so breaching it once closes later periods even if revenue falls back. It is closed to Qualifying Free Zone Persons and to members of multinational groups above AED 3.15 billion of consolidated revenue, other reliefs and deductions switch off for a period in which you elect, and artificial separation of a business to stay under the threshold engages the general anti-abuse rule in Article 50 of the Corporate Tax Law [5]. Tax losses and disallowed net interest expenditure carry forward rather than being lost. Our Small Business Relief guide covers the conditions.
VAT is 5%, with mandatory registration above AED 375,000 of taxable supplies and imports and voluntary registration above AED 187,500 of taxable supplies, imports or expenses [3]. Voluntary registration makes input VAT recoverable at the cost of a filing cycle, which is worth considering if your customers are themselves registered.
Returns are due, with payment, within nine months of your tax period end [4].
There is no UAE personal income tax on salary or dividends.
Real Talk: Registration is required regardless of liability, and a company claiming Small Business Relief still files, because the election is made on the return rather than instead of it [5]. The most common failure we see at this size is not underpayment. It is a founder who correctly concludes there is no tax to pay and therefore does nothing, then discovers two tax periods later that the obligation was to register and file, not to pay.
Which residence route fits an Australian founder?
Short answer: investor or partner residence through your own company, or one of three published Green Visa routes, all five years and self-sponsored.
| Route | Published conditions | Notes |
|---|---|---|
| Investor or partner residence | Based on your trade licence and shareholding | The standard founder route |
| Green Visa, investor and partner | Proof of investment or contribution to a UAE business venture plus the necessary licences and approvals [6] | ICP publishes no minimum investment amount |
| Green Visa, skilled worker | Bachelor's degree minimum, MOHRE occupational classification levels 1 to 3, valid UAE employment contract, minimum monthly salary AED 15,000 [6] | Five years, self-sponsored |
| Green Visa, freelance or self-employed | Bachelor's degree, specialised diploma or equivalent, a Ministry-issued freelance or self-employment permit, and annual income of not less than AED 360,000 in each of the two previous years [6] | Income test looks at both prior years, not one |
All Green Visa routes are five years, renewable and self-sponsored, with no UAE employer or sponsor required, and they allow you to sponsor a spouse and children [6]. Green, Golden and Blue residence holders and their family members carry a 180-day grace period after expiry or cancellation [7].
Our Green Visa guide covers all three routes and ten ways to get UAE residency maps the wider set.
Common Mistake: Treating the residence visa as the answer to the Australian question. A UAE residence visa is evidence that you live here. It is not, by itself, a determination that you have ceased to be an Australian tax resident. Those are different questions, decided by different authorities, on different tests, and without a treaty there is no tie-breaker to bridge them [1].
Our UAE tax residency certificate guide covers the separate document that residence claims usually rest on, and it has its own test rather than following automatically from your visa.
What about banking?
Short answer: Australian founders generally face fewer onboarding obstacles than some profiles, but this is still the step most likely to delay a launch, and applications are sometimes declined.
What helps an application: a licence activity that matches the real business, described consistently across every document; a documented source of funds; a business plan a compliance officer can follow without asking three follow-up questions; realistic first-year projections rather than aspirational ones; named and verifiable counterparties; and physical premises where the model implies them.
What hurts: a generic trading activity chosen for flexibility, projections that do not match the licence, and a structure you cannot explain briefly.
Plan for weeks rather than days, and do not promise a supplier or a new hire a payment date that depends on the account opening.
Once you are through, the running cost varies more by transaction pricing than by monthly fee.
| Account | Monthly fee (AED) | Minimum average balance (AED) | Notes |
|---|---|---|---|
| Ruya Standard | 79 | None | Local transfers from 1.05 OUR, 0.525 SHA, free BEN; closure 105 within 6 months |
| Wio Essential | 99, first month free | None | Transfers within an overall 750,000 per day cap; free closure |
| Mashreq NeoBiz Pro | 99 | None | Local transfers 25 each, international 40; fall-below 100 waived after 6 months |
| Mashreq Pro Plus | 199 | None | Same transfer pricing as NeoBiz Pro |
| Wio Grow | 249, first month free | None | Savings Spaces 1% p.a., fixed savings up to around 4% p.a. by tenor |
| FAB Basic | 250 | 10,000 | Fall-below fee 100 per month; local transfer pricing not available in this data |
Figures as at August 2026 [10], and worth confirming with the bank before you choose.
Quick Math: The monthly fee spread is AED 79 to AED 250, about AED 2,052 a year. Local transfer pricing runs from roughly AED 1 to AED 25 per transaction, and international transfers on one account in this comparison are AED 40 each [10]. If you are paying Australian contractors monthly and settling regional suppliers weekly, the transfer and foreign exchange lines will outweigh the monthly fee several times over. Card foreign exchange markups in this data run from around 1.25% to 3% plus scheme charges, which is another line worth checking before you commit a spending pattern to one bank.
Our guides to opening a corporate bank account and handling a rejection cover the document set, and our account cost comparison works the pricing through.
Can you bring your family?
Short answer: yes, subject to standard income and accommodation conditions, and the grace periods and penalties apply per person rather than per household.
You can sponsor a spouse and children, and Green, Golden and Blue holders extend the 180-day grace period on expiry or cancellation to sponsored family members [6][7]. Our family visa requirements guide covers the conditions.
The penalty structure is worth understanding before you need it. Overstay fines are AED 50 per person per day as a flat rate that does not escalate, plus an AED 100 smart services fee, with an AED 2,000 penalty for misuse of smart services [8]. Critically, paying the fine does not resolve the violation. ICP requires that status is adjusted or the person leaves the UAE [8]. For visit and tourist visas the fine is calculated from ten days after expiry [9].
Quick Math: A family of four in violation for sixty days accrues AED 12,000, not AED 3,000, because the AED 50 is per person per day [8]. That is the arithmetic that catches families who assume a household is treated as one file. It is also why the renewal chain matters: your tenancy or Ejari gates the licence renewal, the licence gates the establishment card, and the establishment card gates every single visa on your file, including your children's.
Our overstay fines guide covers the grace periods, which differ substantially by permit type.
What does the annual compliance calendar look like?
Short answer: eight recurring obligations, one dependency chain, and one filing that was cancelled and no longer applies.
| Obligation | Frequency | Notes |
|---|---|---|
| Trade licence renewal | Annual | Gated by a valid tenancy or Ejari |
| Establishment card renewal | Annual | Gates all visa activity |
| Residence visa renewals | Typically every 2 years, per person | Includes dependants |
| Corporate Tax registration | Once | Required regardless of liability [4] |
| Corporate Tax return | Annual, within 9 months of period end [4] | Small Business Relief is elected on it [5] |
| VAT returns | Quarterly or monthly once registered | Mandatory above AED 375,000 [3] |
| UBO register | Kept current on change | Maintained internally |
| Audited financial statements | Annual in many free zones | Mandatory for Qualifying Free Zone Person status |
| WPS payroll | Monthly if you employ staff | Applies from your first hire |
Cancellation runs in the reverse order of setup: dependants first, then the individual, then employees, then the establishment card, then the licence. Attempting it out of order is the most common reason an exit takes months rather than weeks.
One filing you can stop worrying about. Cabinet Decision No. 98 of 2024 cancelled the Economic Substance Notification and Report requirement for financial years ending after 31 December 2022, fines for those years were cancelled and paid fines refunded [11]. The regime still applies for financial years 2019 to 2022, and ADGM and DIFC operate their own registrar confirmations separately from the federal regime.
Our post-setup guide sets out the dependency chain in detail, and our post-setup services team runs the renewal, PRO, visa, accounting and filing cycle so it does not quietly become your second job.
What if you hire staff in the UAE?
Short answer: Federal Decree-Law No. 33 of 2021 governs it, contracts are fixed-term only, and the end of service calculation is based on basic wage rather than total package.
If your Dubai company employs anyone, the framework is Federal Decree-Law No. 33 of 2021, in force since 2 February 2022 [12]. The points that most surprise Australian employers:
| Item | Position under Federal Decree-Law No. 33 of 2021 |
|---|---|
| Contract type | Fixed-term only, maximum 3 years, renewable by agreement [12] |
| Probation | Maximum 6 months, once per employer; employer terminates on 14 days written notice [12] |
| Leaving during probation | Not less than 1 month notice if moving to another UAE employer, and the new employer compensates recruitment costs unless agreed otherwise; 14 days if leaving the State [12] |
| Working hours | Maximum 8 per day or 48 per week [12] |
| Overtime | Maximum 2 hours per day, not exceeding 144 hours per 3 weeks; basic wage plus 25%, or plus 50% between 10pm and 4am [12] |
| Annual leave | 30 days per year, or 2 days per month for service of 6 to 12 months [12] |
| Sick leave | Up to 90 days per year after probation: 15 at full pay, 30 at half pay, remainder unpaid; none during probation [12] |
| Notice | Not less than 30 and not more than 90 days, as agreed in the contract [12] |
| End of service | 21 days basic wage per year for the first 5 years, 30 days per year after, on last basic wage, capped at two years' wage [12] |
Pro Tip: Model the end of service gratuity from your first hire rather than discovering it at the exit. It is calculated on last basic wage, not on the total package, which means the way you split salary between basic and allowances at the point of hiring determines the eventual liability. Getting that structure right on day one is free. Changing it three years later is not.
Our labour law guide for employers covers the framework with article numbers, and our end of service gratuity guide covers the calculation.
Hiring within the first year and want the employment side set up correctly? Check your eligibility→
Real Client Stories
Real examples from businesses we have helped set up. Names have been changed for privacy.
Ethan, the consultant who thought CEPA was a tax treaty
Ethan relocated from Sydney having read that Australia and the UAE now had a comprehensive agreement in force, and understood that to mean his double taxation exposure was resolved. CEPA entered into force on 1 October 2025 and is a trade and investment agreement [2]. There is no tax treaty, and Australia does not appear on the Ministry of Finance list [1].
His UAE structure was sound. The free zone licence was right for his client base, the residence visa was in place and his filings were current. His Australian position needed advice in Australia, which he had not taken because he believed a treaty had settled it. That advice should have come first, and it ended up costing more than the entire UAE setup.
His comment: "I read the word agreement and filled in the rest myself. Nobody lied to me. I just assumed a trade deal did something it was never written to do."
Chloe, the exporter for whom CEPA genuinely changed the numbers
Chloe ran an Australian food products business and looked at a Dubai entity in 2024, concluding the tariff position did not justify the setup and running cost. With CEPA in force from 1 October 2025 [2], the calculation on qualifying goods changed, and a UAE entity became worth having as a base for re-export into the region.
She set up in a free zone, kept the Australian company for domestic sales, and used the UAE company for regional distribution. Her revenue stayed below AED 3,000,000 in the first period, so she elected Small Business Relief on the return and paid no UAE corporate tax [5], while still registering and filing.
Her comment: "The trade agreement did exactly what it says on the label. The tax part was a separate conversation with a separate adviser, and keeping those two things apart is what made it work."
Nathan, the founder who assumed a visa settled residence
Nathan incorporated in a free zone, obtained a five-year Green Visa on the investor route, and continued to spend a substantial part of each year in Australia with his family still there. Without a treaty there is no tie-breaker to invoke [1], so the question was decided entirely by Australian domestic law and by where he actually was.
The remedy was behavioural rather than structural. Nothing about the UAE company needed changing. What needed changing was the pattern of days and ties, and that required Australian advice he should have taken twelve months earlier.
His comment: "The visa made me feel like the question was answered. It was not even asked. That distinction cost me a year."
Start your Dubai company the right way
For an Australian founder the honest summary is short.
CEPA is in force from 1 October 2025 and is genuinely useful if you trade goods or invest [2]. There is no double taxation agreement, and Australia is not on the UAE treaty list [1], which means your personal position rests on Australian domestic law with no treaty tie-breaker to fall back on. The UAE corporate position is favourable rather than zero: 0% up to AED 375,000, 9% above, and nil under Small Business Relief up to AED 3,000,000 of revenue through to periods ending 31 December 2029 [4][5]. There is no UAE personal income tax. Residence is available through your company or through a five-year self-sponsored Green Visa on published conditions [6].
So run it in this order. Take Australian advice on your residence position and its timing. Decide whether your customers are inside or outside the UAE, which settles free zone against mainland. Build the licence, then residence, then banking, then the compliance calendar. Incorporating first and asking the residence question afterwards is the pattern that produces the expensive version of this story.
Since 2013, BusinessDubai.ae has handled UAE company formation for founders relocating from Australia and elsewhere. We will build the UAE side properly across licence, residence, banking and compliance, our post-setup services team will keep the annual cycle running, and we will tell you plainly that the Australian residence question needs an Australian adviser, because getting that wrong is more expensive than anything we charge.
Frequently Asked Questions
Is there a double tax treaty between Australia and the UAE?
No. Australia does not appear on the UAE Ministry of Finance list of avoidance of double taxation agreements [1], and no negotiations toward one have been publicly announced [2].
But did Australia and the UAE not sign an agreement recently?
Yes, a trade agreement. The Australia UAE Comprehensive Economic Partnership Agreement, and an agreement on the promotion and protection of investments, entered into force on 1 October 2025 after signature on 6 November 2024 [2]. Neither is a tax treaty.
What does the missing tax treaty actually cost me?
Three things: no residence tie-breaker where both countries could treat you as resident, no treaty mechanism for relieving double taxation, and no reduced withholding rates on dividends, interest or royalties [1].
Does a Dubai company mean I stop paying Australian tax?
Not automatically, and without a treaty there is no tie-breaker article to rely on. Your position depends on Australian domestic residency rules and on where you actually spend your time. Take Australian advice before incorporating.
Does a UAE residence visa make me a non-resident of Australia?
No. The visa is evidence that you live in the UAE. Australian tax residence is decided by Australian rules, and the absence of a treaty means there is no tie-breaker to resolve a conflict in the UAE's favour [1].
Does CEPA reduce my tariffs?
On qualifying goods within the agreement's scope, yes, and it has been in force since 1 October 2025 [2]. It has no effect on income tax.
Can an Australian own 100% of a Dubai company?
Yes, in free zones and for most mainland activities. There is no local partner requirement for the large majority of business activities.
Should I choose free zone or mainland?
Free zone if your customers are outside the UAE, mainland if you invoice UAE customers directly, sell to government or operate premises the public enters. Offshore is for holding rather than trading and does not sponsor visas.
What tax will my UAE company pay?
0% on taxable income up to AED 375,000 and 9% above [4]. Small Business Relief can produce nil taxable income where revenue is at or below AED 3,000,000, available for periods ending on or before 31 December 2029, on election and not available to Qualifying Free Zone Persons [5].
Is the free zone 0% automatic?
No. It applies only to the qualifying income of a Qualifying Free Zone Person, which requires substance and activity conditions plus audited financial statements. Selling to UAE consumers or into the mainland is generally an excluded activity.
Do I have to file if I owe no corporate tax?
Yes. Registration and filing are required regardless of liability, and Small Business Relief is elected on the return rather than instead of it [5]. Returns and payment are due within nine months of the period end [4].
What happens if I cross AED 3 million of revenue?
Small Business Relief becomes unavailable, and because the test looks at the current tax period and all previous ones, crossing it once also closes later periods even if revenue falls back [5].
When must I register for VAT?
Once taxable supplies and imports exceed AED 375,000. Voluntary registration is available above AED 187,500 of taxable supplies, imports or expenses, at a rate of 5% [3].
Is there personal income tax in the UAE?
No, on salary or dividends. For a founder drawing profit rather than retaining it, this is usually the largest single item in any comparison with home.
What residence visa can I get?
Investor or partner residence through your company, or a five-year self-sponsored Green Visa. The investor route publishes no minimum investment amount, the skilled worker route requires AED 15,000 monthly salary with MOHRE levels 1 to 3, and the freelance route requires AED 360,000 annual income in each of the two previous years [6].
Does the Green Visa need a UAE employer?
No. All Green Visa routes are self-sponsored, five years and renewable, with no UAE employer or sponsor required, and they allow you to sponsor a spouse and children [6].
What is the grace period if my visa is cancelled?
Golden, Green and Blue residence holders and their family members have a 180-day grace period after expiry or cancellation [7]. Other permit types differ, so check the type you actually hold.
What are the overstay fines?
AED 50 per person per day at a flat rate that does not escalate, plus an AED 100 smart services fee and an AED 2,000 penalty for misuse of smart services [8]. Paying does not resolve the violation; status must be adjusted or the person must leave the UAE [8]. For visit and tourist visas the fine is calculated from ten days after expiry [9].
Is UAE banking difficult for Australians?
Generally less difficult than for some profiles, but still the step most likely to delay a launch. Documentation quality and a licence that matches the real business decide it. Plan for weeks rather than days.
How much does a UAE business account cost to run?
Monthly fees in our August 2026 comparison run from around AED 79 to AED 250, with only FAB Basic carrying a minimum average balance, at AED 10,000 [10]. Transfer and foreign exchange pricing usually matters more than the monthly fee.
Can I bring my family?
Yes, subject to standard income and accommodation conditions, and the 180-day grace period on expiry or cancellation extends to dependants of Green, Golden and Blue holders [6][7].
Do I still have to file Economic Substance reports?
No, for financial years ending after 31 December 2022. Cabinet Decision No. 98 of 2024 cancelled the Notification and Report requirement for those years, cancelled the related fines and refunded paid ones [11]. Financial years 2019 to 2022 are still in scope, and ADGM and DIFC run their own registrar confirmations.
What is the annual compliance cycle?
Trade licence renewal gated by tenancy or Ejari, establishment card renewal, residence visa renewals per person, Corporate Tax registration and an annual return within nine months of period end [4], VAT returns once registered, a maintained UBO register, audited accounts in many free zones, and monthly WPS payroll if you employ staff.
What do I need to know before hiring in the UAE?
Contracts are fixed-term only with a maximum of three years, probation is capped at six months with 14 days employer notice, annual leave is 30 days, and end of service is 21 days basic wage per year for the first five years and 30 days per year thereafter, calculated on last basic wage and capped at two years' wage [12].
How is end of service gratuity calculated?
On last basic wage rather than total package: 21 days per year for the first five years of service and 30 days per year after, pro-rated after one year of continuous service, excluding unpaid absence, and capped at two years' wage [12].
What is the first thing an Australian founder should do?
Take Australian advice on your residence position and its timing, before you incorporate anything. Without a treaty there is no tie-breaker to fall back on, which makes the sequencing more important here than for founders from treaty countries [1].
Related reading: Dubai vs Singapore for Business, UAE Green Visa Guide, UAE Tax Residency Certificate, Double Taxation Agreements UAE
References
[1] UAE Ministry of Finance. Avoidance of Double Taxation Agreements list and international treaties listing. Australia does not appear among the listed agreements. MoF double taxation agreements
[2] Australian Government, Department of Foreign Affairs and Trade. Australia UAE Comprehensive Economic Partnership Agreement, recording that CEPA and the agreement between Australia and the United Arab Emirates on the promotion and protection of investments entered into force on 1 October 2025, that negotiations concluded on 17 September 2024, and that the agreements were signed on 6 November 2024. Also the position that no double tax agreement between Australia and the UAE exists and none has been publicly announced. DFAT Australia UAE CEPA
[3] Federal Tax Authority. Registration for VAT, mandatory above AED 375,000 of taxable supplies and imports and voluntary above AED 187,500 of taxable supplies, imports or expenses, at a rate of 5%. FTA VAT registration
[4] The Official Portal of the UAE Government and Federal Tax Authority. Corporate tax at 0% on taxable income up to AED 375,000 and 9% above, with the return and payment due within nine months from the end of the tax period. u.ae corporate tax
[5] UAE Ministry of Finance. Ministerial Decision No. 131 of 2026 amending Ministerial Decision No. 73 of 2023 on Small Business Relief, extending availability to tax periods ending on or before 31 December 2029, with the AED 3,000,000 revenue threshold applying to the current and all previous tax periods, the relief elected on the Corporate Tax return, Qualifying Free Zone Persons excluded, and the general anti-abuse rule in Article 50 of Federal Decree-Law No. 47 of 2022 applying to artificial separation of business. MoF financial legislation
[6] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). UAE Green Residency, setting out the skilled worker, freelance and investor conditions, including AED 15,000 minimum monthly salary, MOHRE occupational classification levels 1 to 3, AED 360,000 annual freelance income in each of the two previous years, no published minimum investment amount for the investor and partner route, five-year renewable self-sponsored validity, and the ability to sponsor spouse and children. ICP Green Residency
[7] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Cancellation of residency permits, including the 180-day grace period for Golden, Green and Blue residence holders and their family members. ICP residence permit cancellation
[8] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Payment of visa or residence violation fine, at AED 50 per person per day as a flat rate, plus an AED 100 smart services fee and an AED 2,000 penalty for misuse of smart services, with the requirement that status be adjusted or the individual leave the UAE after payment. ICP visa and residence violation fines
[9] The Official Portal of the UAE Government. Visa fees and fines, recording that for visit and tourist visas the overstay fine is calculated from ten days after expiry. u.ae visa fees
[10] BusinessDubai.ae. UAE business banking comparison covering monthly fees from AED 79 to AED 250, the AED 10,000 minimum average balance on FAB Basic, fall-below fees, local and international transfer pricing, and card foreign exchange markups, figures as at August 2026. UAE business bank account comparison
[11] UAE Ministry of Finance. Announcement of Cabinet Decision No. 98 of 2024 amending Cabinet Decision No. 57 of 2020, cancelling the Economic Substance Notification and Report requirement for financial years ending after 31 December 2022, cancelling related fines and refunding fines already paid. MoF announcement on Economic Substance
[12] Ministry of Human Resources and Emiratisation. Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships and its amendments, in force from 2 February 2022, covering fixed-term contracts, probation under Article 9, working hours under Article 17, overtime under Article 19, annual leave under Article 29, sick leave under Article 31, notice under Article 43 and end of service benefits under Article 51. Federal Decree-Law No. 33 of 2021 (PDF)
[13] BusinessDubai.ae. Internal data from UAE company registrations since 2013, including formations for Australian founders, banking onboarding outcomes, and the residence and substance questions that arise where no tax treaty exists. businessdubai.ae
This guide covers the UAE side. It is not Australian tax advice and it is not home-country tax advice. Take advice in Australia on your residence position and its timing before you incorporate anywhere.
