What You Should Know About Taxation In Dubai
There are many advantages provided by the government of Dubai for people who want to come to the country to do business.
Apart from the safe and secure business environment, businessmen have the chance to benefit from zero taxation, especially in the corporate segment.
Leaving the recently agreed value added tax to be levied, the UAE is one of the few countries in the world with zero corporate tax. Of course, this does not suggest that it is safe for people to jump in without knowing more about the country and the regulatory environment.
Therefore we take a look at some basic pieces of information you should know about.
Why Is Good Tax Planning Important?
In simple terms, tax planning Dubai – GlobalEye UAE is about using the possible tax benefits and credits to your advantage to set up a business, but it can even be for personal use.
This is why good tax planning can help you make your business more efficient, and bring down the cost of doing business.
Doing Business In UAE
As mentioned before, one of the key advantages of coming to the UAE to do business is zero corporate tax.
Apart from that, there is also the extra benefit that once your business has been set up, and a period of time has passed by, your relationship with UAE banks can help you borrow capital, and gain access to other financial products, which can improve growth and expansion.
Businesses in Dubai also need not pay corporate tax for the physical offices they set up abroad.
Zero Corporate Tax
The tax liability that may affect businesses in Dubai, which are currently at zero, include:
- Value added Tax (apart from certain products)
- Corporate tax
- Withholding tax
Zero Personal Tax
The tax liability for individuals, which stands at zero at the moment includes:
- Sale of property
- Capital gains
- Real Estate assets
Important Considerations For Tax Planning
While taxes in Dubai in most segments are zero, this does not mean there will not be implications for tax in the other countries, either in the case of an expat, or visiting citizen.
Therefore, to fully avail the zero tax system, you will have to move to Dubai permanently, and wait for a few years, before not being liable for tax in the country you are from.
The other important aspect to remember is that the legal requirements in either country can change anytime, which means staying in touch with your tax planners and financial advisors about these things is crucial.