- Tax planning in Dubai, UAE

Tax planning in Dubai, UAE

Tax Planning is a possibility to use the existing tax benefits of other countries for business, considering competent and professional use of these tax benefits. Proper and legally compliant use of tax planning allows you to optimize taxation and increase your business efficiency.

Tax planning brings plenty of opportunities and, additionally to the taxes benefits, often provides complementary business perspectives.

Dubai taxes are very low thus this country provides a number of benefits from this point of view. When working in UAE the advantage would be not only the taxes in Dubai, but also, for instance, it would help to build relationships with Dubai banks, which, after some time, are willing to consider lending to the business or provide the access to other financial instruments which provide the business the new perspectives and possibilities for its growth.

If you require to open the real head office abroad Dubai taxes are also very attractive from this standpoint as the existence of the real office does not result taxation in the country. This head office, other than achieving the goals of tax planning, can provide additional features such as, due to actual presence in another country, creating new business opportunities not only in terms of tax efficiency, but also brings new contacts and inputs directly to the business.

From this perspective, the use of companies in the UAE for tax planning is a perfect combination, since this country, besides indisputable tax advantages, gives a large number of prospects for your business.

Dubai Taxes – info and opportunities:

The corporate taxes in Dubai for most of types of the business are as follows: VAT – 5%, Corporate– 0%, Withholding 0%.

The level of personal Taxes in Dubai is also very attractive: income 0%, interest and dividends – 0%, income from property sale – 0%, commercial property rental income – 5% VAT.

Thus Dubai provides good potential for:

  • Optimization of business taxation.
  • Increase business efficiency.
  • Obtaining additional business opportunities due to the presence in the country.
  • Advantages for the personal tax planning.

It is also necessary to note that tax planning can be used both for separate business areas as well as for the entire business.

Taxation planning requires analysis of each particular situation and consideration of how various solutions can be integrated into the existing business.

It should be also noted that it is necessary to regularly review the solutions used for tax planning as the laws and regulations of the countries across the Globe are constantly changing. Thus, the solutions that suited for tax planning may become no longer relevant afterwards. At the same time, new solutions that provide new opportunities for tax optimization and efficient business may come become available.

In light of all the above Dubai is one of the very efficient options as taxes in Dubai are minimal or zero for most of the activities.

At the end we must underline that speaking about tax optimization we refer only to the eligible optimization within the possible legal frame.