UAE company, owner in Russia — accounts and tax handled remotely

Русский

The UAE side — handled without you travelling

• Corporate Tax. A company incorporated in the UAE is a UAE Resident Person for Corporate Tax, wherever its owner lives. It must register with the Federal Tax Authority (FTA), keep records for seven years and file an annual return; the rate is 0% up to AED 375,000 of taxable income and 9% above it.
• Free zone 0%. A Qualifying Free Zone Person pays 0% only on qualifying income, and only while it meets all the qualifying conditions — including carrying out its core income-generating activities in the free zone with adequate staff and assets, audited financial statements, the transfer pricing rules and the de minimis limit for non-qualifying revenue (5% of revenue or AED 5 million, whichever is lower). A company managed entirely from abroad may find the substance test hard to meet, so we review it every year.
• VAT. Registration is mandatory once taxable supplies pass AED 375,000 in 12 months and voluntary from AED 187,500. Returns are usually quarterly.
• Access to the FTA. FTA services are accessed through UAE PASS, the UAE's national digital identity, which is personal to each user. We help your authorised signatory set up their own access in line with FTA requirements, and prepare every filing for your approval.
• Beneficial owners. Changes to shareholders or beneficial owners must be recorded and filed within 15 days (Cabinet Resolution No. 109 of 2023).
• Withholding tax. UAE withholding tax is currently 0%, including on dividends the company pays to you abroad.
• Tax Residency Certificate. A UAE-incorporated company can apply for a certificate to claim treaty benefits; a newly incorporated company that has not yet filed a Corporate Tax return must have been established for 12 months first. The FTA asks for documents such as the trade licence and lease, and may ask for more — so the paperwork needs to be in order from day one. If your home country also treats the company as resident, the treaty's own residence rule decides, so a certificate alone may not secure treaty benefits.

All engagements are subject to our client due-diligence checks under UAE anti-money laundering law and applicable sanctions screening.

The UAE–Russia tax agreement

• A comprehensive agreement on taxes on income and capital was signed on 17 February 2025, entered into force on 18 July 2025 and applies from 1 January 2026. It replaces the narrower 2011 agreement.
• For a company resident in both countries there is no automatic tie-breaker: the tax authorities try to agree, looking at the head office, place of effective management and place of incorporation. Without agreement, the company gets no treaty relief except as the two authorities agree.
• Tax on dividends in the source country is capped at 10%; UAE withholding tax on dividends is currently 0%.

Points to watch in Russia

• Where the company is managed. Under article 246.2 of the Russian Tax Code, a foreign company can be Russian tax resident if its executive body regularly acts from Russia or its key officers mainly manage it from Russia. Where management is split between Russia and another country, keeping the accounts, records or staff management in Russia can decide the question; a company working with its own qualified staff and assets in a treaty country such as the UAE may be treated as managed outside Russia if the conditions of article 246.2 are met — your Russian adviser should confirm this.
• Controlled foreign companies. Russian residents holding more than 25% — or more than 10% where Russian residents together hold more than 50% — are controlling persons. Participation notices are due within three months of acquiring a stake of more than 10%, and individuals file the controlled foreign company (CFC) notice by 30 April of the year after the year in which its profit is taxed. The exemption based on the effective tax rate needs at least 75% of the Russian rate, which a UAE company paying 9% or 0% would not normally meet; other exemptions, such as for active companies, may apply, and notices are still filed where an exemption applies.
• Individual owners. Russian tax residents are taxed on worldwide income; dividends are taxed at 13% on up to RUB 2.4 million a year of combined investment income and 15% above.
• Currency control. Residents notify the tax authority of foreign bank accounts within one month of opening, and report flows through them, subject to exemptions.

The Russian points above are general information about how Russian rules may interact with a UAE company. They are not Russian tax advice; please confirm your position with a qualified Russian adviser.

How you stay in control from Russia

• Client portal — upload invoices and bank statements, and see your filings and their status, from anywhere.
• Monthly report pack — profit and loss, balance sheet, your VAT and Corporate Tax position, and the deadlines coming up, sent to you every month (or quarter, if you prefer).
• Calls in your time zone — scheduled video calls with your named accountant at times that suit Russia.
• Nothing filed without your approval — you see every return and the tax figure before it goes to the FTA.
• Working with your Russian adviser — we advise on UAE tax. For Russian tax, we work alongside your own adviser and give them the UAE figures and documents they need.

Sources: Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, as amended (Articles 3, 11, 18, 45, 51 and 56); Cabinet Decision No. 116 of 2023; Cabinet Decision No. 100 of 2023, as amended; Ministerial Decision No. 229 of 2025; Ministerial Decision No. 84 of 2025; Federal Decree-Law No. 8 of 2017 on VAT, as amended, and Cabinet Decision No. 52 of 2017 (Executive Regulation, Article 7); Cabinet Resolution No. 109 of 2023; Ministerial Decision No. 247 of 2023 and FTA Tax Residency Certificate guide (TPGTR1, October 2024) and service page; FTA login page (UAE PASS); Ministry of Finance list of double tax agreements; Agreement between the UAE and the Russian Federation for the avoidance of double taxation (17 February 2025), Federal Law No. 189-FZ of 7 July 2025 and Ministry of Finance of Russia notice on entry into force; Russian Tax Code (articles 23, 25.13–25.15, 25.13-1, 207, 209, 210, 224, 246.2 and 284); Federal Law No. 173-FZ on currency regulation (article 12).