The United Arab Emirates has a very advantageous taxation regime both for companies and for individuals. Local and foreign employees in Dubai
are not taxed on their income
produced here and they are not subject to other taxes like the stamp duty or the capital duty. While there have been talks about introducing a value added tax in the Emirates, there are no announced plans to also introduce a personal income tax
The experts at our law firm in Dubai
can give you information and advice on tax planning if you are working and living in the Emirates.
Individual taxation in Dubai
Individuals who derive income from a Dubai employer or from other sources are not taxed on their profits. The Emirates do not apply a capital duty tax on individuals nor a stamp duty or a capital acquisitions tax.
A property tax applies to those transfers of real estate properties. One of our lawyers in Dubai can give you specific information on this tax, depending on your local address. Foreign employees are not subject to social security taxes in Dubai.
While no inheritance or estate tax applies
, individuals who pass over property in Dubai
will have to comply with the applicable laws of inheritance and the requirements to draw up a will. When there is no available will the Sharia’a laws will apply.
Taxes in Dubai
Dubai has no taxes on a company’s profits except for those legal entities operating in the oil and gas exploration and production and branches in Dubai
belonging to foreign banks.
The taxation rates
for these types of companies vary according to the business field: banks are taxed at a lower rate than corporations involved in oil and gas production. One of our lawyers is able to provide you more information on how this limited income tax applies.
There are no taxes on dividends or capital gains in Dubai and no special taxes on foreign companies. It is expected that a value added tax will be introduced in Dubai and the rest of the UAE starting with 2018.
Dubai can be considered a tax haven by many investors but also by individuals who work for foreign or local companies. The quality of life is high in the Emirates and Dubai is known as a cosmopolite city where the marvels of engineering go beyond the limitations of the surrounding natural landscape.