Corporate tax
In the UAE, taxes are only paid in specific sectors.
The tax rates are as follows:
Zero tax rate of 0% for all other companies and industries.
Progressive rate of up to 55% for oil and gas companies.
Rate of up to 20% for branches of foreign banks.
Thus, corporate tax in Dubai will generally be 0%.
In order to benefit from total tax exemption and to be able to declare to the foreign tax authorities that your company is a Dubai company, it is necessary to obtain a tax residency certificate.
Taxation of individuals
In Dubai there is no personal income tax or any law that regulates it, this means that a natural person residing in Dubai will pay 0% taxes on their personal income.
Other taxes
Real estate and VAT
Dubai charges property taxes of 5% on the annual rental value of the property we have in the emirate.
Additionally, VAT in Dubai is 5% and is applicable to most goods and services sold in the country.
Other benefits
Dubai also has no inheritance taxes, gift taxes or wealth taxes.
The Emirates have signed 88 treaties to avoid double taxation and have signed the Multilateral Instrument, making Dubai a major financial center from which to coordinate their businesses.
Given this attractive tax framework, many high-income businessmen and professionals have decided to move to live in the Emirate.
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