Tax Services in Dubai, UAE

Many investors and startup entrepreneurs consider Dubai as their most preferred investment destination in Asia. The reasons for this preference are many, but when it comes to monetary matters, tax-related benefits have great significance. Dubai is a tax haven and provides many tax concessions and benefits for investors and business houses. Most of the companies registered in the Emirates need not pay Corporate income tax.

Kiltons provides outstanding tax services in Dubai and across the UAE, handling various tax-related activities. Getting the tax consultant services in Dubai will help you prevent financial loss of your company, availing more investment opportunities, maintain proper auditing, enhance profitability, etc. Our team of tax consultants provides tax advice for companies in Dubai to help them solve their tax issues in line with corporate strategies.

The way taxation is implemented in the UAE is precisely mentioned below. Before going into the details, let us have an understanding of Resident and Non-resident companies in the UAE.

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Resident and Non- Resident companies in the UAE


Resident companies

Resident companies are those that are established in the UAE with a minimum of one local director. The company is managed from the Emirates. The registered office of a Resident company is present in the country of incorporation. UAE residents or non-residents may own a Resident company.

Non-Resident companies

Non-resident companies are also called Offshore companies. The registered office of a Non-Resident company is not present in the country of Incorporation. The ownership and management is vested on non-resident individuals. A non-resident company is not allowed to conduct any business transactions in the UAE. These companies enjoy tax exemptions of various kinds like Corporate tax etc.

Prominent business entities in UAE

The prominent business entities in the UAE are as follows.

  • Limited Liability Company (LLC)

  • Branch & Representative Office

  • Joint Stock Company (Private/Public)

A foreign investor is entitled to own up to 49% of the company shares when the company is incorporated in the UAE mainland. Whereas, if the company is incorporated in any one of the Free zone jurisdictions, foreign investors are entitled to own 100% of the shares.

Resident companies and taxation

Taxation rules pertaining to the resident companies in Dubai are simple and straightforward.

  • Taxable income

    Resident companies in Dubai are exempted from taxable income. However, there is an exception. Exceptions apply to 3 categories of business establishments and they are listed below.

    Overseas bank branches – A tax rate of 20% (fixed) is applicable

    Companies dealing with production – A tax rate of 50-55% is applicable

    Oil and Gas survey - A tax rate of 50-55% is applicable

    Financial year – January-December is considered as the financial year. The very first year of the company after its formation is not taken into consideration.

    Dividends – Company dividends are exempted from taxation.

    Real estate tax

    When it comes to the reassigning of real estate property or asset to a new owner, a transfer fee is charged. The transfer fee is determined on the basis of the jurisdiction in which the transfer takes place.

    Social security tax

    Expat employees are exempted from Social security tax in the UAE. When it comes to a UAE national employee, a 17.5% tax rate is applicable based on the total salary of the employee.

  • The Excise tax
    The UAE Excise tax was introduced on October 1st, 2017. The tax was imposed on specific products like energy drinks, carbonated beverages and tobacco goods. A 50 % tax rate is imposed on carbonated beverages. A 100% tax rate is imposed on energy drinks and tobacco goods. The Excise tax is levied on both locally produced and imported products.
  • VAT in the United Arab Emirates

    In the UAE, the Value Added Tax (VAT) was launched on January 1st, 2018. A good majority of the goods and commodities come under VAT and the VAT rate imposed is 5% in UAE. However, based on certain conditions some goods and services are exempted from VAT and they are financial services, residential buildings supplies, passenger support supplies and bare land.

    Business establishments or Resident companies with yearly revenue of more than Dh 375,000 must compulsorily register for VAT. VAT registration is optional for businesses whose annual turnover is in between Dh 375,000 and Dh 175,000. However, these rules are not applicable to Nonresident companies.

    A lack of compliance with VAT registration rules and regulations can invite legal complications like fines and penalties. It can even obtain a black mark for the company. Besides providing VAT registration services, Kiltons tax consultants are proficient in providing various other Value Added Tax services in Dubai and across the UAE.

  • Stamp taxes

    At present, stamp taxes are not collected in the UAE.

  • Customs duties

    Rate, insurance and shipment charges of the import are the factors considered when it comes to Customs duties. The GCC Customs Union was formed in 2003 and UAE is a member of the same. The Customs Union was formed to improve the trade relations between the GCC nations. Customs duties are not applicable when a GCC nation conducts trade with another GCC nation.

  • Payroll taxes

    At present, the personal income tax is not applicable in the case the of UAE. Therefore, the payroll taxes are not levied from the employees.

  • Hotel and tourism tax

    Taxes are applicable to hotel and entertainment services offered in many Emirates. However, the tax collection and administration need not be the same in all the Emirates. Tourists and individuals who book hotel rooms in Dubai are imposed a Tourism Dirham charge. The amount is charged on room/night basis and it may vary from 7 Dhs to 20 Dhs. The tax levied is around 10 Dhs in Abu Dhabi.

    Kiltons offers valuable and updated Accounting and tax-related advice and assistance to the esteemed clients irrespective of the size of the organization. At Kiltons, we are committed to providing the most reliable tax services to our clients. Our tax consultant team comprises specialists adept in UAE taxation rules and can guide in every step of your business.  For the latest tax updates concerning the Emirates, feel free to call Kiltons tax consultants.

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