11 September 2026 · Delegated
Delegated & Corporate Directorships
Where a company is engaged to provide directorship services, or a business delegates one of its employees to sit on a board in the business's name and invoices for it, the supply is a taxable business-to-business service at 5%, not the out-of-scope natural-person directorship. The distinction is whether the director acts personally as an individual, or a business supplies the directorship service.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
A business supplies it
Then it is a normal service.
- A company providing directorships.
- A delegated, business-invoiced director.
- Taxable B2B supply at 5%.
- Register and charge VAT as normal.
Personal or business?
That is the whole question.
- Individual acting personally = out of scope.
- Business supplying the service = taxable.
- Look at who invoices and in whose name.
- Document the arrangement.
Related guides
Frequently Asked Questions
For businesses supplying directors.
Is a corporate director taxable?
Yes. Where a company provides directorship services, it is a taxable supply at 5%.
What about a delegated director?
Where a business delegates a person to a board in its name and invoices for it, that is taxable.
How do I tell the difference?
Ask whether the director acts personally as an individual, or a business supplies the service.
Can Exiloz classify our arrangement?
Yes. We determine whether your directorship arrangement is taxable.
Is your directorship taxable?
Exiloz classifies your corporate or delegated directorship for VAT.