What are the tax benefits for businesses in the UAE?

What are the tax benefits for businesses in the UAE?

The United Arab Emirates (UAE) offer several tax benefits for businesses, including:

1. No corporate income tax: The UAE does not levy a corporate income tax, which means that businesses are not taxed on their profits.
2. No capital gains tax: The UAE does not levy a capital gains tax, which means that businesses can make profits by selling assets without being taxed.
3. No value-added tax (VAT): The UAE introduced a VAT in 2018, but it is relatively low at 5% and does not apply to all products and services. In addition, businesses can request a refund of VAT on purchases related to business activities.
4. No payroll tax: The UAE does not levy a payroll tax, which means that employers are not required to pay social contributions or taxes on their employees’ salaries.
5. Free zones: The UAE has established several free zones where businesses can benefit from additional tax benefits, such as VAT exemptions, corporate income tax exemptions, customs clearance, and financing facilities.

It is important to note that the conditions and tax benefits may vary depending on the specific regulations in the United Arab Emirates. It is recommended to contact a legal consulting company or a company formation agent to obtain accurate information on tax benefits for businesses in the UAE.