Is UAE still a tax haven?KWS Admin
Taxation in the UAE has been a point of debate and discussion for almost everyone who wanted or ever thought of operating a business in the UAE. It is a hot topic because it is not available to everyone. Businesses in the UAE have been lucky to have something of this sort around them because it smells of positivity and hope for low costs and higher profits, an investors dream.
Low taxation is the single most famous point that has brought many to the UAE in search of jobs, and for company setup in Dubai. In fact, businesses which are well established in other places were compelled have their branches setup in the UAE for four main reasons:
- Expansion to the UAE
- Low taxation meant high profits
- The market had huge demand
- Setup in UAE allows access to Asian markets.
In Europe and Asia, even though opportunities are available for businesses to be setup and profits to be made but the risk is greater because of the costs involved. The political, economic and power dynamics are such that these opportunities are overshadowed and so they do not look as lucrative as the ones in the UAE.
When we talk about company setup in Dubai, It has often times been discussed in private and public gatherings how the UAE allows businesses to operate without them paying taxes to the government. Let’s clear some basic misunderstandings that exist in the minds of businessmen and investors.
UAE does not require you to pay income tax however, other taxes like the Value added tax need to be paid. This does not still mean that business in the UAE has costs equal to those in other countries. The costs are still low and business setups are still lucrative.
It is extremely important that you learn about corporate taxes in the UAE if you plan on starting your own business. Oil and gas companies, and the bank branches of foreign banks are obligated to pay taxes. Indirect taxation is common in the UAE. These taxes have to be paid by the people in the UAE and no one can escape these since they are mostly embedded in the prices of goods and services. Taxes are collected for services like street lights and garbage collection and other such services.
So UAE is tax haven only for those who are not eligible for business taxes. For those who businesses, they have to pay something to the government as this is a good source of income for the government and will be used for further development of the UAE.
Our services help you
KWS ME, a consultancy based in Dubai, provides services for business registration and company formation in Dubai. The business setup consultants Dubai, like all others in the UAE, provide advisory and help to businesses in their registration process. Experts at such consultancies lend a hand with business setup to foreigners because:
- Foreign investors are unaware of the processes
- There is a language barrier that makes it difficult for them to understand processes
- It takes time to get things done when you are not particularly aware of rules and processes in a new place
At KWS ME, professionals provide services for company formation in Dubai and support services like pro services and services like visa processing and product registration. KWS ME is one of the business setup consultants Dubai that are famous for their top class and accurate guidance on matters that are important from a business point of view and the quality of their services, that has become better with time, experience and interaction with the market. Experts at the firm are tasked with providing updated information and guidance on how businesses can operate with ease in the UAE.
Give us a call or send an email with the required details. Our experts will pick up your queries and respond accordingly.