Dubai, the dazzling city of the United Arab Emirates, has always been a hot-spot for investors and budding entrepreneurs worldwide. Its popularity stems from various aspects, including its robust infrastructure, strategic location, and diversified economy. However, the icing on the cake is undoubtedly the tax benefits it provides. Being a tax haven, Dubai offers many tax concessions and privileges to business entities. Generally, most companies registered in the UAE aren’t obligated to pay Corporate Income Tax.
As a leading provider of tax services in Dubai and across the UAE, P.W caters to numerous tax-related requirements. By availing of our tax consultancy services in Dubai, you can prevent financial losses, seize more investment opportunities, maintain proper auditing, and enhance your profitability. Our team of expert tax consultants offers tailored tax advice for companies in Dubai, helping them address their tax-related issues in alignment with their corporate strategies.
Let’s delve into the details of taxation in the UAE. However, it is essential first to understand the concept of Resident and Non-resident companies in the UAE.
Resident and Non-Resident Companies in the UAE
Resident Companies
Non-Resident Companies
Key Business Entities in UAE
The main business entities in the UAE include:
- Limited Liability Company (LLC)
- Branch & Representative Office
- Joint Stock Company (Private/Public)
Foreign investors can own up to 49% of the company shares when incorporating a company in the UAE mainland. However, in Free Zone jurisdictions, they can own 100% of the shares.
Tax Regulations for Resident Companies
Dubai has simple and straightforward tax rules for resident companies.
Taxable Income
Overseas bank branches - taxed at a fixed rate of 20%
Companies dealing with production - taxed at a rate of 50-55%
Oil and Gas survey companies - taxed at a rate of 50-55%
The financial year is considered from January to December, with the company's first year after formation not considered. Dividends distributed by the companies are exempt from taxation.
Real Estate Tax
Social Security Tax
Excise Tax
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PW offers comprehensive services covering essential requirements such as visa processing, document drafting, government liaising, bank account opening, and more. Our team of business setup consultants, PRO service executives, and compliance advisers ensures a hassle-free process in Dubai, UAE.