Tax Code in Dubai

Updated on Monday 17th October 2016

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Generally speaking, a Tax Code is a large-sized document that implies many rules for companies and individuals to follow, in order to pay a certain percentage of the income to the authorities or government. As we all know, Dubai is an attractive destination for all overseas investors who wish to do business here. Companies registered here are exempt from taxation, although you should take into consideration that businessmen making profits in the UAE may be subject to income taxation in their home countries. Our accountants in Dubai can provide you with information and guidance regarding the taxation system and the tax code in Dubai.

What companies are subjects to the tax code in Dubai?

Each Emirate has its own taxation system and Dubai has its own corporate tax rules. It is good to know that the tax code will only imply certain businesses in the city, and here we refer to the companies in Dubai that have activities in oil and gas industry. This is also available for foreign banks that have branches in Dubai. The gas and oil companies in Dubai need to pay a 55% income tax and the foreign banks in the city are subject to a 20% tax on the chargeable income. It is good to know that there is no VAT charge in Dubai, although this subject was on debate lately.

The tax code is used as a support by all tax lawyers that have the legal responsibility to explain the matters for the public. Please take into consideration that you can receive accounting services in Dubai, our experts being prepared with detailed information and assistance to all foreign investors who wish to open a small or a large company in Dubai.

What you need to know about the mandatory taxes in Dubai

The authorities in Dubai have settled taxes for commercial spaces, hotels and property rentals in the city. You should know that electricity and the water (DEWA) are also subject to taxation in Dubai. Regarding the alcohol imports in Dubai, a 50% tax is levied and a 30% tax is imposed on alcohol purchase in Dubai. UAE have signed numerous double tax treaties with many countries, in order to avoid double taxation.

Please don’t hesitate to contact our accounting firms in Dubai, if you need additional information about the tax code in Dubai.