What are the tax free / tax exempt companies? This is generally a company which enjoys special tax regime due to special types of its activities, its particular location or due to other factors. Presently all UAE companies excluding banks and oil related companies are tax exempt – this tax exemption applies to main land companies as well as free zone ones. The only tax which is applicable from beginning of 2018 is the VAT tax with the rate of 5%.
UAE is well known for being the excellent jurisdiction for doing different types of businesses locally as well as internationally. There all types of businesses opened and successfully operating here – media, production and industrial, trading, consulting, logistics, travel and tourism, banking and financial services and etc., etc., etc.
Even though there is lot of info on all types of tax free companies in Dubai and other Emirates of the UAE sometimes there is still some confusion on audit requirements and its tax regime. When talking about audit requirements presently all free zone onshore companies need to file an audit report at the end of each calendar year. However such filing does not result any corporate tax liabilities. For offshore companies – there is no requirements for audit report, nether there are any corporate taxes due.
In terms of tax number for companies in the UAE – presently, due to tax free regime, there are no tax numbers. This applies to both – offshore and onshore legal entities. Since beginning of 2018 VAT is applicable thus onshore companies which fall under the VAT reporting requirements need to register for the VAT number.
Registration of onshore or offshore tax exempt company in Dubai, the UAE is possible by local and foreign citizens as well as legal entities. When talking about tax exemption for onshore free zone companies, there is some certain time period when such tax free period is applicable. This period depends from free zone to free zone and is on average 50 years.
Registration of a tax free company in the UAE is the straight forward process. Required time to open it depends on company type and is between 2 to 14 days. Its further administration is also uncomplicated under the condition you have local professional support from a licensed consulting company such as ours.
To get all the info on how to register tax free company get in touch with us and we send you the comprehensive info pack with all the data you may require.