For companies incorporated outside the UAE, obtaining a TRC
hinges on where their Place of Effective Management (PoEM) is located.
This concept is critical when claiming residency under a Double Taxation
Agreement (DTA). In this blog, we break down what PoEM means, how to prove it,
and what practical steps companies can take to qualify for a UAE TRC.
As per Section 4.1.4 of the UAE TRC Guide (October 2024), a juridical
person is a tax resident in the UAE if:
“It is incorporated abroad but is effectively managed and
controlled in the UAE.”
Key components of PoEM include:
- Strategic
decisions made in or from the UAE
- Regular
board meetings held in UAE (physically or virtually)
- Financial,
legal, and operational control centralized in the UAE
This rule is particularly useful for holding companies, IP
entities, or investment vehicles based offshore but operationally driven from
the UAE.
Practical
Examples
- BVI
Holding Company
A company incorporated in the British Virgin Islands has a sole director
based in Dubai. Investment decisions, fund allocations, and communications
with banks all occur from the UAE. Board meetings are held virtually with
UAE timestamps and IP logs. With UAE bank statements, board minutes, and
accounting records, it qualified for a UAE TRC.
- Cyprus
Sales Entity Managed from UAE
A Cyprus company’s CEO and commercial lead both live in Dubai. Despite
board members being scattered globally, key operations — client pitches,
contract approvals, and fund flows — are controlled from the UAE. Fastlane
structured proof of PoEM through decision logs, UAE leases, and virtual
board logs.
- Failed
Case:
A Cayman entity with no
UAE-based staff or banking applied for TRC citing only a license. The FTA
rejected the claim due to lack of substance or documented decision-making
in the UAE.
To support PoEM in the UAE, your TRC file must include:
- Trade
License (UAE branch or FZ entity)
- Board
meeting minutes (including agendas, decisions, attendees)
- UAE
residency/employment details of directors
- UAE
bank statements
- Lease
agreement or coworking proof
- Audited
financials prepared in UAE
- Resolutions
showing key actions taken from the UAE
PoEM is not about incorporation — it’s about real
control. If you run your business from Dubai, the proof must show it
clearly and consistently. Just holding a license or offshore structure won’t
suffice.
Fastlane Consultancy specializes in securing TRCs for
offshore entities through PoEM restructuring. We’ve worked with companies
incorporated in:
- 🇧🇻 BVI
- 🇨🇾 Cyprus
- 🇰🇾 Cayman Islands
- 🇬🇧 UK
- 🇸🇬 Singapore
…and helped them claim UAE tax residency under DTA rules.
Our services include:
- ✅
PoEM assessment and TRC eligibility audit
- ✅
Preparation of board minutes and decision logs
- ✅
Virtual boardroom and timestamp support
- ✅
UAE director appointment and residence proof setup
- ✅
Bank account, accounting, and lease integration
- ✅
TRC application + legal opinion letter drafting
With over 200+ corporate TRC cases handled across
free zones like DMCC, RAKEZ, IFZA, and Dubai South, Fastlane gives you both the
structure and the substance to pass PoEM scrutiny.
