As part of the seven emirates of the UAE, Dubai hasn’t imposed any income tax legislation for resident companies, no matter if they are small or big businesses. However, regardless of the line of activity or the company size, businesses must keep their accounts updated and structured by professional accountants for permanent accurate reports on their profitability and steadiness, as well as for proper preparation when they need financing. Our tax agents in Dubai are at your disposal with in-depth information about the necessary financial services for your business in Dubai and with tax consulting in Dubai, linked to your operations.
| Quick Facts | |
|---|---|
| Who needs tax advice in Dubai |
– business owners, – high net worth individuals |
|
Financial services offered |
– tax compliance and advice, – expert financial consultancy, – financial planning, – saving & investments advice, – tax minimization |
|
Wills & real estate planning advice (YES/NO) |
Yes |
| Trusts & tax planning support (YES/NO) | Yes |
| VAT registration support (YES/NO) | Yes |
| Monitoring the financial status of a firm |
On request |
| Financial analyses for companies (YES/NO) |
Yes |
| Financial plan and implementation |
On request |
| Tax efficiency solutions offered (YES/NO) | Yes |
| Support for taxation declarations (YES/NO) |
Yes |
| Business valuation report |
On request |
| Business consultancy |
On request |
| Annual statements and reporting |
With the help of our accountants |
| Wealth management advice (YES/NO) |
Yes |
| Auditing services | On request |
| Tax residency in Dubai | Understanding tax residency rules is crucial in determining tax liabilities for residents in Dubai. |
|
Double taxation agreements |
Dubai has signed 60 double taxation agreements with various countries to avoid the double taxation of income. |
|
VAT in Dubai |
5% value-added tax (VAT) is implemented in Dubai, and our tax consultants assist businesses with VAT compliance. |
| Tax planning strategies | Our tax consultants in Dubai provide effective tax planning strategies to minimize tax liabilities legally. |
| Individual income tax |
Dubai does not impose individual income tax, making it an attractive destination for high-net-worth individuals. |
| Tax compliance |
Our tax consultants in Dubai ensure businesses comply with tax regulations and file tax returns accurately. |
| Tax audits and investigations |
Our accountants in Dubai assist businesses in preparing for tax audits and investigations made by tax authorities. |
| Transfer pricing |
Our consultants help businesses establish transfer pricing policies in compliance with international standards. |
| Tax incentives |
Dubai offers various tax incentives to attract foreign investment and foster economic growth. Like 0% VAT on exports, and exemptions or reductions on custom duties for some goods. |
| Free zones and tax benefits | Businesses operating in Dubai’s free zones enjoy tax exemptions, customs duty waivers, and other benefits. There are more than 20 free zones operating in Dubai. |
| Tax dispute resolution |
Our tax consultants assist businesses in resolving tax disputes and represent them before tax authorities. |
| Personal tax planning |
Individuals can seek the services of our tax consultants to plan their finances effectively and minimize personal tax burdens. |
| Tax treaty interpretation |
Our accountants assist in explaining/ interpreting and applying the provisions of tax treaties for cross-border transactions. |
| Tax incentives for research and development |
Dubai offers tax incentives to encourage research and development activities in various industries. |
| Compliance with FATCA and CRS | Our accountants in Dubai assist businesses in complying with Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) regulations. |
Table of Contents
Companies with residency in the UAE
It is good to know that registered companies in the UAE are considered residents if the following elements are proved:
- All the shares are owned by residents of the UAE or,
- The entire or the majority of the company’s income comes from a trade or a business other than an investment company in the UAE and,
- The total or most of the value of the company’s property is attributable to the property utilized in that particular trade or business.
Here is an infographic with information on this topic:
General taxation information for resident companies in Dubai
We provide tax consulting in Dubai for both small and large companies. Here is the main tax information which concerns a resident company in Dubai:
- taxable income:
There are no taxes on the income of companies, with the exception of oil and gas exploration and production businesses and branches of foreign banks.
The branches of foreign banks are generally taxed at a 20% fixed rate. Income tax decrees have been given out, however, they are applied only to the income of oil and gas exploration and production companies, at flat rates of 50-55%. If you wish to find out more details on our tax advice for your company in Dubai, as well as the bookkeeping services we can provide for you in this safe haven, please get in touch with our tax advisor in Dubai. Feel free to solicit tax consulting in Dubai at any time.
- fiscal year:
The financial year is from January to December, with the exception of the first year of a company which will be calculated since the incorporation.
- dividends:
There is no taxation on dividends for companies in Dubai. Yet, it is recommended to consult a tax advisor in Dubai for further advice.
- capital gains:
There is no taxation on capital gains in Dubai. Nevertheless, accounting services are needed for the preparation of financial statements for distribution to banks, government bodies, and shareholders.
- real property tax:
A transfer fee is applied on the transfer of real property, according to the local jurisdiction.
- social security:
The UAE doesn’t apply social security taxes to foreign workers. The employer’s contribution is 12.5% of the contribution calculation salary.
- V.A.T.:
Since January 2018, the VAT is imposed for the first time and it is set at a rate of 5%.
- other taxes:
Other taxes include municipal taxes applied to some hotels, leisure services, and real estate rentals. The yearly rental income of residential and commercial tenants is taxed at 5% and 10% rates.
VAT in the UAE
Starting with January 2018, the countries part of the GCC (Gulf Cooperation Council) are subject to VAT. This tax is set at 5%, the lowest rate on an international plan, and is applicable for luxury goods, tobacco, luxury vehicles, and home appliances. The same VAT is already implemented for certain oil & gas products. As for the real estate sector, the VAT rate of 5% is issued for commercial buildings when sold or rented. As for the VAT exemptions in the UAE, the following categories should be observed:
- export of goods;
- the health care services;
- transportation (bus, metro);
- basic foods (dairy, meat, soft drinks);
- residential real estate buildings.
Besides the VAT introduction in the UAE, an excise tax was also imposed on several types of products. These are the non-essential goods like tobacco, jewelry, beverages, and luxury vehicles which already suffered changes. The excise tax varies between 50% and 100% from the product’s price, depending on the type of item levied.
We remind that the VAT implementation for the GCC countries was a solid recommendation on behalf of the International Monetary Fund (IMF) which considers that such tax will sustain these countries and their already fruitful economies. If you want to register your company in Dubai, it is strongly suggested to bear in mind that VAT registration is mandatory. Our Dubai tax consultants can help entrepreneurs understand the new taxation regime in the UAE and can direct business people through the registration process of the value-added tax. Also, you can ask our team for audits in Dubai.
Looking for payroll in Dubai? Our accountants can provide you with information about these and also explain what this type of service entails. besides the calculation and distribution of salaries in the company, payroll also means statutory reporting, recruiting and administration of staff in the firm, as well as support in case of inspections carried out by the authorities.
Business entities in Dubai
A crucial issue when opening a company in Dubai is choosing the right business entity. The choice of such an entity can vary depending on the location, objectives, your particular line of business, and other factors. The form of the company should be chosen keeping in mind the markets where it will operate – local or international.
The types of business entities in Dubai (United Arab Emirates) are:
- the limited liability company;
- the private/joint stock company;
- the branch or representative office.
Foreign investors, in general, own maximum 49% of a Dubai-registered company, although owning 100% of the entire business is possible in the free trade zones, the most popular one being the Dubai International Financial Centre (DIFC). Therefore, investors who need to incorporate a company in Dubai require accounting services and taxation consultancy. We can help foreign entrepreneurs with expertise in tax consulting in Dubai, and with personalized accounting services when you decide to open a business in the UAE. You can rely on the support offered by our tax advisor in Dubai.
Those who want an audit in Dubai can benefit from the services offered by our experts. Having the necessary experience and knowledge, they can prepare and examine financial reports, with the help of which they can highlight the financial situation of the company. We also remind you that legal requirements and financial reporting standards will be respected, as specified by the legislation.
We can offer tax advice also for foreign investors interested in opening a company in Dubai and obtaining citizenship by investment. They should know that the citizenship by investment program has stringent requirements and it is more recommended to obtain the Dubai investment visa, one of the simplest ways to move to the United Arab Emirates as an entrepreneur. The program was created for investors and businesspersons as a pathway for residency.
Support from our audit companies in Dubai
Our services offered to companies established in Dubai, UAE also include those offered by qualified auditors with experience in this field. The financial status of a company with economic activities in Dubai may be supported by an appropriate audit, in accordance with applicable law, including IFRS or International Financial Reporting Standards. Here is what an audit for a company in Dubai entails:
- All the financial documents of a company, resulting in a year of activities, can be verified by an auditor specialized in this field.
- Objectivity and transparency are the basis for financially accurate reporting, with the help of an internal or external audit.
- Any problems or inconsistencies related to the company’s financial documents can be discovered through an audit.
- A qualified auditor will propose a series of measures designed to change any financial problems in the company.
Small, medium and large companies can be subject to an audit, internal or external. So, if you want to know more about these services needed by a company with activities in the UAE, do not hesitate to talk to our team of accountants in Dubai. We are at your disposal with advice and support for the smooth running of the company you own, so call on our Dubai tax consultants.
Accounting services in Dubai – How we can help you
Complete bookkeeping services can be offered by our team with experience in this field. All transactions that take place in the company come to the attention of a specialist. Cash books, income statements, issuing invoices, daybooks, and many other financial journals are checked and completed, where appropriate, by an experienced accountant. Companies with economic activities in Dubai must comply with local and international accounting rules, so it is recommended that you turn to our team of tax agents in Dubai to ensure everything is fine from this point of view.
Payroll tax calculations, salary reports, direct deposits, paychecks, and payroll records are a few of the payroll services our firm can offer. The same accounting firm in Dubai can handle such aspects for a company in Dubai, mentioning that our specialists have experience in this important field. You can benefit from personalized offers if you get in touch with us and send your requests.
Verification of annual financial statements is important in a company before submission to the relevant authorities. According to the UAE legislation, companies with operations in this country must prepare annual financial statements for submission. These documents reveal the financial status of a firm, in detail, therefore, a specialist is required for this task. You can benefit from comprehensive services offered by our accountants in Dubai, if you request a callback and if you ask for a free case evaluation.
Responsibilities of a tax advisor in Dubai
The support of a tax advisor in Dubai is essential for the smooth running of a business. Tax advice is necessary to be able to prepare a solid financial plan, with correct and concrete estimates. Our Dubai tax consultants have important responsibilities, but to know what they entail, we will review some information:
- The duties are not limited to the preparation of the necessary documents for the tax returns requested by the authorities. A tax advisor in Dubai can deal directly with clients’ concerns and guide and prepare them for future tax concerns that might arise.
- A consultant of this kind must be aware of the changes in the legislation regarding the way of charging a company. He/she must ensure that the new rules are properly implemented.
- Tax preparations might be subject to errors that can be detected from the start by the tax advisor in Dubai. The experience of such a consultant speaks for itself in such a situation.
- If normally, a tax advisor in Dubai can cover all financial issues related to taxation, there is also a specialist who deals with a certain area. Depending on the steps you have, it is good to talk with one of our Dubai tax consultants.
- Having customer service capacities, a tax advisor will know how to manage any type of problem, regardless of the clients that appear. Communication is another benefit of such an expert.
- Attention to every single detail, especially when working with numbers, is necessary to offer quality services, as a tax advisor in Dubai. If these attributes are not found when you are looking for such a specialist, then it means that market analysis is still needed in this regard.
- A tax advisor can work on his/her own account, but he can also work within a company. We remind you that you can benefit from the services offered by our accounting firm in Dubai.
Financial planning in Dubai – How can we help
Financial planning is a task that can come to the attention of a tax advisor in Dubai. Those interested may have questions about the taxes to be paid for:
- Retirement planning.
- Children’s education planning.
- Family protection financial planning.
A proper financial plan can incorporate all three financial objectives mentioned above, taking into account taxation and other financial aspects. Various accounts or even funds can be opened for which supervision is needed in terms of the method of taxation, therefore, a specialist in the field, such as our Dubai tax consultant, can provide the necessary support.
If you are considering financial planning and want to prepare your wealth correctly for the future, it is recommended to have the support of such an expert with you.
Wealth management advice for you
Do you want to protect your investments and properly manage the wealth you have and which you want to develop further? You can ask for wealth management services and also the support of a tax advisor in Dubai.
Clients can be advised on safe investments, savings and opportunities while continuing their business. A financial plan can be established and investment growth objectives can be set, with a high rate of return, but an important role will be played by the financial advisor due to his experience in the field. Future financial outlooks come to the attention of our specialists who deal with the correct tax planning. Therefore, if you need such services, we recommend that you contact our Dubai tax consultants.
Investing in Dubai
Dubai is not only attractive from a real estate point of view, but also for many other possibilities in terms of business for international entrepreneurs. We present to you a few of the reasons why Dubai should be on top of your list for future investments:
- The tax regime is appealing – Even though the VAT was recently implemented in UAE, the tax regime continues to be quite attractive. There is no capital gains tax imposed in Dubai. Starting with 2023, a new corporate tax of 9% has been implemented.
- A stable economy – the government allows 100% ownership in more than 122 economic activities in UAE. In terms of total FDIs for 2019, UAE registered more than USD 154 billion.
- Great return on investments – UAE attracts many international entrepreneurs who want to generate profits in this country. The investment returns are as expected, presenting confidence in front of financiers.
- A great infrastructure – The business climate in Dubai is also sustained by the proper and well-developed infrastructure. Therefore, one of the key strengths of the UAE is the infrastructure, an important aspect attentively measured by an entrepreneur from overseas.
You can also analyze the following facts and figures about the economy of UAE:
- The greenfield investment sector registered around USD 13 billion in 2019.
- The 2020 Doing Business Report ranked UAE 16th out of 190 worldwide economies in terms of simplified business conditions.
- Around USD 154 billion was the total FDI stock for UAE in 2019.
We are accountants in Dubai committed to assisting you in an efficient manner with accounting services for your business in this safe haven, finding the most proficient methods so that you save as much as possible from your company’s income. Please contact us if you need more detailed and personalized tax advice for your company in Dubai.