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Ajman Sharjah Ras Al Khaimah UAE Offshore Company SAIF Free Zone with Dubai Bank Account

UAE & Dubai – A Tax Haven

High taxes have always been and continue to be a major concern when attempting to establish and run a business. The good news is that UAE is literally a tax haven, bestowing significant benefits from a tax standpoint.

Massive Tax Benefits

  • Businesses in UAE & Dubai are generally not required to pay any direct taxes on corporate profits. They can, in fact, avail 100% repatriation of capital and profits.
  • There are also no withholding taxes on outward remittances in the form of interest, royalties or dividends.
  • There are no taxes levied on personal income.
  • In those rare cases taxes are levied, another major advantage is tax deferment. This means that you have the benefit of postponing the tax payments into the future. You can technically defer taxes for an indefinite time by reinvesting the profits within the company.

All these benefits, in combination with the added power of compounded interest, could result in a dramatic financial gain for your business in UAE.

Exceptions to the Tax-Free Rule

  • Oil companies are taxed at the rate of 55% to 85% of their profits.
  • Foreign banks are taxed at a flat rate of 20% in Sharjah, Dubai, Abu Dhabi and Fujairah.
  • There is also a 10% municipal tax on hotel revenues and entertainment levied in Dubai.

Although municipal taxes are charged, these import duties are typically at a rate of 5% and the majority of items are completely duty exempt, like capital goods, the raw material for industries, food, medicines etc.