16/10/2026
One employee in the other country can create a permanent establishment.
Hiring your first person across the UK–UAE corridor is not simply adding a payroll line.
It can mean:
A second employment and payroll system.
Local tax, social-security and reporting obligations.
Banking, insurance and employee-benefit requirements.
A permanent establishment risk for the company.
A UK employee who habitually concludes contracts or, from 1 January 2026, habitually plays the principal role in concluding them, for a UAE company can create a UK permanent establishment.
The same principle applies in the UAE under Article 14 of its Corporate Tax Law.
The key question is not where the employee sits. It is what they do on behalf of the company.
Read the full article via the link in bio.