Website Last updated:

July 30, 2026

This guide clarifies the UAE Corporate Tax treatment of income derived from outside the UAE by Resident Persons, whose worldwide income falls under the scope of the law per Article 12. It explains key mechanisms for preventing double taxation, distinguishing between the Participation Exemption for foreign dividends under Article 23 and the elective Foreign Permanent Establishment exemption under Article 24. For non-exempt foreign income, it details the process for applying the Foreign Tax Credit under Article 47, outlining the calculation and eligibility conditions to mitigate international double taxation.

Taxation of Foreign Source Income

Corporate Tax Guide | CTGFSI1

November 2023

1. Glossary

2. Introduction

2.1. Overview
2.2. Purpose of this guide
2.3. Who should read this guide?
2.4. How to use this guide
2.5. Legislative references
2.6. Status of this guide

3. Relevance of foreign source income under the Corporate Tax Law

4. What is foreign source income?

Contents