Tax Minimization Methods in Dubai

Updated on Friday 25th November 2016

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The tax minimization is also known as the fiscal optimization. This is a method by which a company can use the tax legislation, in order to reduce the contribution to fees and taxes that need to be paid in the country. The purpose is to maximize the revenues, as much as possible, with legal methods. Our accountants in Dubai can provide you with information and guidance if you are interested in the tax minimization for your company in Dubai.

Tax minimization solutions in Dubai

Businessmen who choose to make investments in Dubai can set up donations in order to take advantages of particular tax deductions. With a good plan, this type of solution can be a proper option in order to reduce taxes. Individuals can also choose to invest in mutual funds and can create a suitable retirement strategy with acceptable provisions or contributions. Another proper solution that leads to tax minimization in Dubai is to invest in certain equipment and office provisions and then to profit from a lower tax bill in the present fiscal year. It is good to know that our accountant in Dubai can offer you specific tax minimization solutions after a proper analysis of your investments and company activities.

Details about the taxation system in Dubai

Overseas investors choose Dubai for business, due to its great taxation system, where the government does not enforce income taxes for citizens or companies.  Limited liability companies or joint stock companies are top choices in Dubai when it comes to opening a company here, and many of them are not subject to taxation. As a reminder, the foreign investors with registered businesses for fiscal policy in their home countries and having yearly profits may be required to pay certain taxes.

The oil and the gas companies need to pay a 55% tax rate of the annual revenues and the foreign banks with branches in Dubai are levied 20% tax rate of the declared incomes. An annual tax of 5% needs to be paid by al industrial enterprises to the municipality. People who live and legally work in Dubai don’t need to pay taxes, but they might be subject to taxation in their home countries for the income they receive in the UAE. On the other hand, we remind that you can rely on our accounting services, and you can also ask for audits in Dubai.

If you wish to find out more details about the tax minimization methods available for your company, you may contact our accounting firms in Dubai.


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