Moving your business from Australia to Dubai: the tax when you leave

The ATO residency tests

• The resides test is the main test for working out if you are an Australian resident. Source
• The other tests are the domicile test, the 183-day test and the superannuation test. Source

Capital gains when you leave

• When you stop being a resident, you are treated as having sold your CGT assets at market value. Source
• Taxable Australian property is excluded from that rule. Source
• You can choose to ignore those gains and losses instead. The assets then stay in the Australian tax net. Source

The UAE side of the move

• Most mainland companies can now be 100% foreign owned. Some activities of strategic importance can still carry limits. Source
• UAE Corporate Tax is 0% on taxable income up to AED 375,000 and 9% above that. Source
• A Qualifying Free Zone Person pays 0% on Qualifying Income. Its other taxable income is taxed at 9%. Source
• Every taxable business must register for Corporate Tax, including free zone businesses. Source

Common questions

Sources

1. ATO: Residency tests
2. ATO: How changing residency affects CGT
3. UAE Government portal: full foreign ownership
4. UAE Government portal: Corporate Tax
5. Federal Tax Authority: guide on Free Zone Persons
6. UAE Ministry of Finance: Corporate Tax

More guides

• Free zone 0% or mainland 9%: what your UAE company pays
• UAE tax residency: the 183-day and 90-day tests
• Moving your business from India to Dubai: will India still tax you?
• Moving your business from the UK to Dubai: what HMRC still looks at
• Moving your business from the US to Dubai: you still file with the IRS
• Moving your business from Israel to the UAE: where is your centre of life?
• Moving your business from Europe to Dubai: check your exit tax first