Important Facts Regarding Dubai Tax Structure
Offshore zones are areas where businessmen can register the so-called offshore or low tax companies company – the legal entities that can enjoy a number of benefits, in the first place, those ones that are related to taxpaying. Many modern entrepreneurs and investors consider the UAE and Dubai in particular as the perfect jurisdiction for registering an offshore or onshore company for the purpose of tax structure and asset protection. The UAE has the very straightforward and lenient tax system and protection of investors’ interests. It guarantees confidentially and personal data protection to anyone willing to do business on its territory.
Dubai tax structure and available corporate solutions offer for the absence of all major taxes, including corporate tax, income tax, withholding tax, tax on interest and dividends. The only tax applicable is VAT. This means that neither employees nor business owners are obliged to pay any other taxes except of VAT to the UAE government according to the regulation of the tax legislation in in Dubai.
VAT tax has been introduced by the countries of the Gulf Cooperation, including the UAE. The law introducing VAT in the UAE came into effect on January 1, 2018. The VAT tax comprises 5% and is levied at every production stage inside the country. It is ultimately included into the final price of the product and is paid by the end consumer. It is calculated as a percentage of the product’s retail price. When talking about international corporate and tax structures the VAT is not of a concern as it applied to goods and services delivered inside the UAE.
The UAE and available corporate tax structures attracts businessmen and investors from all over the world due to a number of reasons. Dubai tax system is one of them. Besides, the UAE has one of the most diversified economies in the world, is open to innovation and has about 40 Free Trade Zones on its territory.
Free Trade Zones are another valuable element related to the tax structuring in Dubai and the UAE. Apart from the exemption from the majority of taxes, import and export taxes are not imposed on individuals and legal entities on the territory of Free Trade Zones. There are more than 20 Free Trade Zones only in Dubai and many more - in other emirates of the UAE. Registering your company here, you will be able to take full advantage of the Dubai tax structuring solutions and its potential advantages.
There is one more advantage related to the tax structure over Dubai and the UAE – the state has signed a series of treaties on the avoidance of double taxation with dozens of countries of the world. This means that you won’t be charged taxes twice – in the place of the company’s registration and in the country of your tax registration. Just the opposite - there may be no taxes abroad due to available double tax treaties and no tax in Dubai either.
The UAE is one the best countries for doing business – the advantages it can offer to an entrepreneur include not only a tax-free environment, but also security and confidentiality of data along with a diversified economy that welcomes innovation. The UAE is a modern financial hub, a truly globalized place with a convenient and lenient tax structure in Dubai and other emirates.
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