Business Setup in Tax Free Environment
One of the top reasons for business setup in Dubai is its zero taxation system. Dubai is a popular business hub in the world enticing investors and businessmen with its easy procedural methods and tax free environment. This commercial haven with its international standards of professionalism, highly efficient workforce, outstanding quality of service, structural polices of the government and business avenues welcome huge number of entrepreneurs every year – out of which a tax-free status works out as the best of all. Speak to an expert from Asnaad Consultancy as we guide you through the entire process of the tax-friendly benefits this country has to offer. So have you wondered why does Dubai and other Emirates around UAE provide a tax free environment? Dubai signed treaties and agreements for avoidance of double taxation system along with countries who were also leading in trade and commerce sectors. Being a member of GCC (Gulf Cooperation Council) and GAFTA (Greater Arab Free Trade Area) - there is no duty fee levied on the business conducted in Dubai. Apart from this GAFTA enables UAE to trade with other countries under GAFTA with minimum duties.
Thus be it personal tax, corporate tax, capital gains tax, value added tax or withholding tax – any of these do not apply in this region making Dubai an ideal place to setup a business. Most of the sector in Dubai provide zero taxation policy. Nevertheless, these polices do not apply to some branches of such as major petroleum, gas and oil companies, some international banks and hotels among other. To know about zero taxation system and whether your business has the privilege to be a tax-free entity contact Asnaad Consultancy now!
Characterization of tax-free Environment in Dubai:
- There is no tax on business entities to attract foreign investment being the growth factor of economic development
- Revenues generated from entertainment tax and municipal activities providing the critical source of funding
- There is an exception as Oil companies’ pay up to 55% tax whereas foreign banks pay 20% tax along with few other items such as cigarettes are charged 100% tax and liquor is also taxable up to 50%.
- Custom tax can be charged by 5% but there are several exemptions such as medicinal products, infrastructural material, food products and more.
- Under a Free Zone companies’ business tax in Dubai have maximum exemptions however LLC’s also offer several taxation incentives.
- As per the GCC agreement, Dubai has to charge 10% tax of luxury products however, over 70 commercial sector are exempted from paying tax in Dubai making it best place to make investment.