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Corporate Tax in Dubai

Corporate Tax in Dubai

Updated on Tuesday 19th April 2016

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Corporate-Tax-in-Dubai.jpgDubai is considered by many businessmen as a tax haven of the Middle East. Taxation is favorable within all of the emirates that make up the United Arab Emirates, but Dubai has even more to offer to the foreign investors: special free zones, where taxation for companies is virtually nonexistent. The corporate tax in Dubai has a maximum value of 55%, but it only applies to businesses operating in certain sectors, like oil companies.
Our Dubai lawyers can give you more details about taxation in Dubai and the rest of the UAE and they can explain why you should invest in the Emirates.

Taxes for companies in Dubai

Companies incorporated in Dubai are required to pay taxes on their earnings, but not all companies have to do so. Corporate taxation in Dubai is limited only to banks and oil companies. Other types of companies in Dubai are not subject to corporate tax.
Oil companies in Dubai pay a maximum amount of 55% corporate income tax on the UAE source income and banks in Dubai pay 20% tax on their Dubai source income. The calculation method for the taxable income is different for the two types of taxable businesses: the tax for banks is calculated according to their audited financial statements, while for oil companies the tax is due according to their concession agreements. Oil companies also have to pay other types of taxes in Dubai, like royalties.  Our Dubai law firm can give you more information about the calculation methods.

Other information about taxes in Dubai

Dubai has no VAT, no capital duty and no stamp duty. Branches in Dubai are treated just as any other company in Dubai and they are not subject to additional taxes. Companies in Dubai are considered tax residents if all of their shares are owned by UAE residents and if all or a substantial part of the company’s income comes from a trade or business in Dubai.
Our attorneys in Dubai can give you more information about the regulations for foreign companies and the special free trade zones where foreign investments are facilitated. You can contact our law firm in Dubai for more information.


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