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The UAE Tax Glossary in one paragraph. A plain-English reference for the UAE Corporate Tax, VAT, Pillar Two, and transfer pricing terms used across our site and across FTA guidance. Covers CT, QFZP, SBR, QDMTT, MNE, GloBE, AED 375k threshold, Related Party Transactions Schedule, De Minimis Test, Modified Nexus, Qualifying Income, Qualifying Activity, Designated Zone, Reverse Charge, Voluntary Disclosure (Form 211), Tax Residency Certificate (TRC) and more. Each term is defined with practical examples and linked to the detailed article where applicable.
QFZPQualifying Free Zone Person
UAE Corporate Tax
A UAE Free Zone legal person that qualifies for a 0% UAE Corporate Tax rate on qualifying income by meeting all five conditions in Cabinet Decision 100 of 2023: adequate substance in the Free Zone, qualifying income only, transfer pricing compliance, audited IFRS financial statements, and has not elected out. Non-qualifying income is taxed at 9%.
Reference: Federal Decree-Law 47/2022 Article 18, Cabinet Decision 100/2023, Ministerial Decisions 139/2023 and 265/2023.
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QDMTTQualified Domestic Minimum Top-up Tax
Pillar Two
The UAE’s Pillar Two top-up tax, introduced by Cabinet Decision 142 of 2024 for financial years starting on or after 1 January 2025. Applies to UAE constituent entities of MNE Groups with consolidated revenue above EUR 750m in at least two of the four preceding fiscal years, topping the UAE jurisdictional effective tax rate to 15% on in-scope income. UAE operates QDMTT only, not IIR or UTPR.
Reference: Cabinet Decision 142/2024; OECD GloBE Model Rules.
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DRCDomestic Reverse Charge
UAE VAT
A UAE VAT mechanism that shifts the obligation to account for VAT from the seller to the VAT-registered buyer on specified B2B supplies: gold, diamonds, investment-grade precious metals, scrap metals, certain hydrocarbons, certain electronic products (mobile phones, tablets, laptops for resale) and qualifying construction services. The net cash effect for a fully-taxable buyer is nil; the compliance effect is that the buyer must self-account.
Reference: Cabinet Decision 25/2018 and amendments.
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SBRSmall Business Relief
UAE Corporate Tax
A UAE Corporate Tax election that treats a taxable person as having no taxable income for a tax period where revenue in that period and all previous tax periods does not exceed AED 3,000,000. Available for tax periods ending on or before 31 December 2026. Not available to Pillar Two MNE group members or to QFZP electors.
Reference: Ministerial Decision 73/2023.
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TRCTax Residence Certificate
UAE residence
A certificate issued by the UAE Federal Tax Authority confirming that an individual or juridical person is UAE tax resident for a specific financial year. Required to claim relief under UAE Double Taxation Treaties. Individual qualification: 183 days physical presence (primary), or 90+ days with permanent residence and UAE employment/business (secondary), or centre of financial and personal interests (tertiary). Juridical person: incorporated in UAE or effectively managed and controlled (POEM) in UAE.
Reference: Cabinet Decision 85/2022.
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CbCRCountry-by-Country Report
BEPS Action 13
The OECD BEPS Action 13 jurisdictional reporting requirement, adopted into UAE law by Cabinet Resolution 44 of 2020. Required for UAE-parented MNE Groups with consolidated revenue above AED 3.15 billion (EUR 750m equivalent). The CbCR notification is due by the last day of the fiscal year; the report is filed within 12 months of financial year end.
Reference: Cabinet Resolution 44/2020; OECD BEPS Action 13.
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ESREconomic Substance Regulations
Legacy, superseded for CT entities
UAE substance rules introduced under Cabinet Decision 31 of 2019 for “Relevant Activities” (banking, insurance, investment fund management, lease-finance, headquarters, shipping, holding company, intellectual property, distribution and service centre). Largely superseded for UAE Corporate Tax-in-scope entities from 1 June 2023, as the substance condition is now evaluated through QFZP and other CT rules.
Reference: Cabinet Decision 31/2019 (as amended by CD 57/2020).
UBOUltimate Beneficial Owner
AML / Governance
A natural person who ultimately owns or controls, directly or indirectly, 25% or more of the shares or voting rights of a UAE entity, or who otherwise exercises ultimate effective control. Required to be disclosed under UAE Cabinet Decision 58 of 2020. Changes must be filed with the licensing authority within 15 days. Annual UBO confirmation sits with the trade licence renewal cycle.
Reference: Cabinet Decision 58/2020.
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DTTDouble Taxation Treaty
Cross-border
A bilateral tax treaty between the UAE and a foreign country allocating taxing rights over cross-border income flows (dividends, interest, royalties, services, capital gains) and providing a mechanism for relieving double taxation. UAE has an extensive DTT network (over 140 signed, over 110 in force). A UAE TRC is usually required to claim treaty relief in the partner jurisdiction.
Reference: UAE DTT network; UAE-UK DTT 2016; UAE-India DTAA.
UK-UAE DTT rates →
DE MINIMISQFZP de minimis
QFZP cliff-edge
The threshold whereby a QFZP’s non-qualifying revenue in a tax period must not exceed the lower of (i) 5% of total revenue or (ii) AED 5,000,000. Exceeding this threshold loses QFZP status for the current tax period AND the next four tax periods (5 years total). A cliff-edge rule, not a sliding adjustment.
Reference: Cabinet Decision 100/2023.
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FIGForeign Income and Gains regime
UK regime
The UK regime that replaced the non-dom remittance basis from 6 April 2025. Gives new UK arrivals a 4-year window in which qualifying foreign income and foreign gains are not taxed in the UK, subject to an election. Eligibility requires non-UK residence for the 10 consecutive UK tax years immediately prior to the year of arrival.
Reference: UK Finance Act 2025.
For UK expats in UAE →
SRTStatutory Residence Test
UK residence
The UK test for determining whether an individual is UK tax resident for a tax year. Combines automatic UK tests, automatic overseas tests, and a sufficient-ties test based on days spent in the UK and connecting factors (family tie, accommodation tie, work tie, 90-day tie, country tie).
Reference: UK Finance Act 2013, Schedule 45.
UK SRT calculator →
NRCGTNon-Resident Capital Gains Tax
UK regime
UK Capital Gains Tax regime that applies to non-UK-resident disposals of UK real estate (and interests in UK property-rich entities since 6 April 2019). A standalone UK NRCGT return is due within 60 days of the completion date.
Reference: UK TCGA 1992 (as amended); HMRC NRCGT 60-day return.
NRLNon-Resident Landlord scheme
UK regime
The UK HMRC scheme requiring UK letting agents (or UK tenants where no agent is used) to deduct basic-rate UK income tax at 20% from UK rental payments made to non-UK-resident landlords, unless the landlord has HMRC NRL approval to receive rents gross.
Reference: UK Income Tax (Trading and Other Income) Act 2005; HMRC NRL scheme.
POEMPlace of Effective Management
Indian tax
An Indian tax concept that treats a foreign company as Indian tax resident if its place of effective management is in India in that year. Central to Indian HNW families and founders restructuring to UAE — the POEM test looks at where key management and commercial decisions are made in substance, not just the formal registration.
Reference: Indian Income-tax Act 1961, section 6 (as amended by Finance Act 2016); CBDT Circular 6/2017.
India to UAE →
LRSLiberalised Remittance Scheme
Indian FEMA
The Indian RBI regulation under FEMA permitting resident individuals to remit up to USD 250,000 per financial year abroad for permitted purposes (including investment in overseas property and overseas direct investment). Central to Indian families acquiring Dubai property.
Reference: FEMA Notification No. FEMA 1/2000-RB; RBI Master Direction on LRS.
India to UAE →
VARAVirtual Assets Regulatory Authority
Dubai regulator
The Dubai regulator for virtual asset activities (crypto exchanges, trading platforms, custodial services, token issuance). Established 2022 under Dubai Law No. 4 of 2022. Issues the Virtual Asset Service Provider (VASP) licence for Dubai (excluding DIFC, which is separately regulated by DFSA).
Reference: Dubai Law No. 4 of 2022 (VARA); VARA Rulebook.
UAE crypto tax →
TNMMTransactional Net Margin Method
OECD TP
One of the five OECD transfer pricing methods under Chapter II of the OECD TP Guidelines. Benchmarks the net profit indicator of the tested party against comparable independent companies performing similar functions. The most widely applied method in UAE TP practice because it requires only one side of the transaction to be benchmarked.
Reference: OECD Transfer Pricing Guidelines Chapter II; UAE Ministerial Decision 97/2023.
UAE TP methods →