Dubai has shot up like a rocket and is today a great business jurisdiction. Dubai has become an increasingly popular destination for expats.
Unites Arab Emirates (UAE) does not have:
- Income tax
- Wealth tax
- Inheritance tax
- Payroll tax
- Capital Gains tax
In the past, most businesses in the UAE have enjoyed zero income tax on their profits. This is due to change in 2023 with the introduction of Corporate Income Tax (CIT). This will apply for fiscal years starting on or after 1st June 2023 and will apply to all business activities in the UAE.
The UAE Corporate Tax regime has introduced a new system:
- All annual taxable profits that fall under AED 375,000 (approx. USD 100,000) shall be subject to zero rate.
- All annual taxable profits above AED 375,000 shall be subject to 9% rate.
Corporate Tax will apply to both resident and non-resident persons.
It is now mandatory for companies established in UAE to maintain proper financial records beginning from their current fiscal year onwards as part of the requirements for the filing of corporate tax returns.
Brief information about Dubai
Dubai is the second largest Emirate in UAE where tourism, the oil industry and financial services are the main contributors to the Dubai economy.
Read more about Dubai on Wikipedia.