Paying Taxes in Dubai

Updated on Friday 07th October 2016

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Dubai is well-known for a great taxation system, and many foreign investors choose to do business in the city. The UAE government does not enforce income taxes to individuals and enterprises, but it is good to know that overseas businessmen registered for taxation intentions in other states and having profits in Dubai, might be subject to taxation. Our accountants in Dubai can offer proper guidance and information regarding the taxation system in Dubai.

Details about the company taxation in Dubai

Foreign investors who choose to open a company in Dubai, usually prefer the private or public joint stock enterprises or the limited liability companies. Take into consideration that many Dubai companies are not subject to taxation. The only difference is that the oil and gas enterprises are levied with 55% rate of their incomes, and a branch of a foreign bank is levied with 20% tax rate from the chargeable incomes. The remittance of dividends and the capital gain are exempt from taxation in Dubai. If you wish to set up a company in Dubai, take into consideration the free trade zones that offer no custom duties. All companies in Dubai will have to pay the real estate property tax to the municipality, such as 5% annual tax rate for industrial enterprises, and 15% annual tax rate for a foreign bank with a branch in Dubai. Our accounting firm in Dubai can provide you with assistance and details about the taxation for businesses in Dubai, so make sure to solicit proper help.

Details about individual taxes in Dubai

The great thing about Dubai is that people living and working in the city are not subject to taxation, meaning there are no income taxes for individuals. On the other hand, take into consideration that you might pay taxes in your home country for the gained money in Dubai. UAE offer double taxation treaties, in order to prevent the double taxation of income. Regarding other taxes that need to be paid while living in Dubai, we mention the 5% municipal levy for residential properties, the 10% tax rate for hotels and commercial space rentals. Our accounting services in Dubai are the proper option, if you decide to have a business in the city.

If you need additional information about the taxation system in UAE, you can contact our accountants in Dubai.


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