Selling Your Australian Company After Moving to Dubai: What Is Taxed and How It Is Valued

By Bill Anderson, FCCA, Chief Executive Officer, Assetica · Published 2026-11-13

Direct Answer: Once you are a foreign resident, Australia taxes the sale of your company shares only if they are taxable Australian property. That usually means you hold at least 10% of the company and its value comes mainly from Australian real property. Shares also stay taxable if you chose to defer the exit charge when you left. Because the property test compares market values, an independent valuation decides which side of the line the sale falls on.

Our guide to moving from Australia to Dubai covers the tax on leaving. This guide covers what comes later: you live in Dubai, and a buyer appears for the Australian company.

Whether Australia taxes that sale depends on two things. One is the choice you made when you left. The other is what the company owns.

The choice you made on departure still matters

When you stopped being an Australian resident, CGT event I1 treated you as having sold your shares at market value. You had two options.

You paid on departure. The gain up to that date was taxed. Later growth is outside Australian tax unless the shares are taxable Australian property for another reason.
You chose to defer. The ATO says shares on which you disregard the gain become taxable Australian property. The whole gain is then taxed when you sell.

The two tests for shares in a company

If you did not defer, shares in an Australian company are taxable Australian property only when both tests are met.

The 10% test. You and your associates hold at least 10% of the company.
The principal asset test. More than half of the market value of the company's assets comes from Australian real property.

The ATO says that from 1 October 2026 the principal asset test looks at the 365 days before the sale, not only the day of sale. A trading company with a large property on its balance sheet can be caught.

What foreign residents lose

The 50% discount. The full CGT discount is generally not available to foreign residents for gains after 8 May 2012. A partial discount may apply for the time you were resident.
Cash at completion. Foreign resident capital gains withholding can require the buyer to withhold 15% of the price on taxable Australian property. Our guide to the foreign resident CGT changes covers the withholding rules.

Where the valuation comes in

The principal asset test. It compares the market value of property against all other assets, including goodwill. That is a valuation exercise, and the answer decides whether tax is due at all.
The departure value. If you paid on departure, the value at that date is the cost base for anything taxed later.
The sale price. A buyer and their funder need a price built on normalised earnings.

Goodwill often decides the principal asset test. A business with strong earnings may hold a valuable building and still pass, because the goodwill outweighs it. That has to be shown with evidence, not asserted.

Selling an Australian company from the UAE?

Tell us what the company owns and when you left Australia. At the scoping call we confirm the valuation date, the readers and the scope, then quote a fixed fee in writing.

Business valuation for Australians in the UAE

Frequently Asked Questions

Do I pay Australian tax if I sell my company after moving to Dubai?

Only if the shares are taxable Australian property. That is the case if you chose to defer the exit charge when you left, or if you hold at least 10% of the company and more than half of its asset value comes from Australian real property.

What is the principal asset test?

It asks whether more than half of the market value of the company's assets comes from Australian real property. The ATO says that from 1 October 2026 the test looks at the 365 days before the sale.

Do foreign residents get the 50% CGT discount?

Generally not for gains after 8 May 2012. A partial discount may be available for the period you were an Australian resident.

Why do I need a valuation to sell my Australian company?

The principal asset test compares market values, so a valuation decides whether the sale is taxed. You also need the value at your departure date and a supportable sale price.

This article is general information, not Australian or UAE tax, legal or investment advice. Tax rules, rates and thresholds change. Confirm the current position with a qualified Australian tax adviser before you act.

Disclaimer. This article is general information about valuation practice in the UAE and is not a valuation, an opinion of value, or tax, legal or investment advice. Any figures or reference ranges are indicative and are not a quotation for any specific business. Rules, rates and the requirements of individual authorities change, so confirm the current position before relying on anything here. For your own circumstances, book a scoping call.

Speak to Assetica about Business Sale & M&A Advisory

Assetica is an independent business valuation firm in Dubai. We do not audit and we do not broker deals, so the number carries no conflict. Read more about business sale & m&a advisory, or book a scoping call. Standard reports are issued in five to seven business days.