By Bill Anderson, FCCA, Chief Executive Officer — Assetica, Dubai, UAE
Definition: Australian owners relocating to Dubai need an independent business valuation at three points: CGT event I1 (the ATO deems you to have disposed of your CGT assets, including private company shares, at market value on ceasing Australian tax residency), the UAE Golden Visa business route (equity worth at least AED 2 million, about AUD 800,000), and selling the business. Assetica prepares these to RICS and IVS standards, consistent across the ATO and the GDRFA.
When you cease Australian tax residency, CGT event I1 treats you as having disposed of each CGT asset at market value on your departure date. Shares in a private Australian company are included, so their market value drives the tax. Taxable Australian property such as real estate is excluded. You can elect to defer the gain until actual sale, but that keeps those assets in the Australian CGT net. Either way the decision rests on a defensible valuation.
The exit charge only bites once you have genuinely ceased Australian tax residency under the ATO tests, and a dated valuation supports that position. Separately, the UAE Golden Visa business route requires an independent report confirming your equity is worth at least AED 2 million net of debt, isolating your specific stake and formatted for the GDRFA. An Australian accountant letter does not satisfy the GDRFA.
The danger is divergence: an ATO market value that disagrees with your Golden Visa report. Assetica fixes the valuation date, methodology and normalised earnings once, then formats the output for each authority, so your Australian tax advisor and the GDRFA see the same underlying value. Typical delivery five to seven business days.
Do I pay CGT in Australia when I move to Dubai?
Ceasing Australian tax residency triggers CGT event I1: the ATO deems you to have disposed of your CGT assets, including private company shares, at market value on your departure date and taxes the gain. Taxable Australian property such as real estate is excluded. You can elect to defer the gain until actual sale, but that keeps those assets in the Australian CGT net. Either way you need a defensible market valuation of the business.
Is an Australian accountant's valuation accepted for the UAE Golden Visa?
No. The GDRFA expects an independent valuation from a recognised valuation firm, isolating your specific shareholding net of debt and formatted for the UAE. An Australian accountant's letter serves the ATO side but does not satisfy the GDRFA. Most relocating owners need both reports, built from one consistent underlying value.
How much is the AED 2 million Golden Visa threshold in Australian dollars?
Roughly AUD 800,000 at current exchange rates (AED 2 million is about USD 545,000). The threshold applies to your own equity in the business net of debt, not the company's total value or its revenue.
Can I defer the CGT until I actually sell?
Yes. On ceasing residency you can elect to disregard the CGT event I1 deemed gain and instead be taxed when you actually dispose of the asset. The trade-off is that those assets stay within the Australian CGT system. The choice, and the tax either way, rests on a defensible market valuation dated to your departure.
How long does the valuation take?
Typically five to seven business days from receiving your Australian financial statements, shareholding details, management accounts and bank statements, plus the UAE licence if the entity is set up. Expedited two to three day delivery is available for visa or transaction deadlines.