Dubai is one of the most business-friendly destinations in the world, with a plethora of tax incentives available to businesses that choose to establish themselves here. These incentives, which include a tax-free environment, customs duty exemptions, VAT refunds, corporate tax exemptions, and free zone benefits, are designed to attract businesses and investors from around the world, and to create a business environment that is conducive to growth and development.
Below, we discuss the tax incentives in Dubai, and how Chesterfield can help businesses establish themselves in this thriving metropolis.
Tax Incentives in Dubai for businesses
Low Tax Environment
One of the most significant tax incentives offered by Dubai is its low tax environment. Many businesses operating in the city are not subject to corporate or personal income tax, making it an attractive destination for entrepreneurs and investors looking to minimise their tax liabilities.
Free Zone Benefits
Dubai has several free zones that offer additional tax incentives to businesses operating within these zones. These benefits include 100% foreign ownership, 100% repatriation of capital and profits, no currency restrictions, and no corporate tax.
Customs Duty Exemption
Dubai offers customs duty exemptions on the import and export of goods, making it easier and more cost-effective for businesses to import and export goods from the city. This is particularly beneficial for businesses involved in international trade and commerce.
Value-Added Tax (VAT) Refunds
Businesses registered for VAT in Dubai can claim back VAT paid on eligible business expenses, such as travel, entertainment, and office supplies. This can result in significant savings for businesses, particularly those with a high volume of business expenses.
Corporate Tax Exemptions
As of June 2023, Dubai will have a new corporate tax rate of 9%. However, this rate is only applicable to companies with profits exceeding AED 375,000 (approx. $100,000). Dubai also offers a corporate tax exemption for businesses operating in certain industries, such as healthcare, education, and research and development. This exemption is designed to encourage investment in these industries and to promote growth and innovation.
Why Choose Chesterfield for Tax Incentives in Dubai?
Chesterfield is a leading provider of company formation services in Dubai. With almost 30 years of experience helping businesses establish themselves in the city, we are ideally placed to support you at every step of the process.
At Chesterfield, we can help businesses take advantage of the tax incentives in Dubai in the following ways:
Chesterfield can help businesses register their companies in Dubai, ensuring that they meet all the necessary legal and regulatory requirements. We can also advise businesses on the best corporate structure to minimise their tax liabilities and maximise their tax efficiency.
Our experts can help businesses obtain the necessary visas for their employees to work in Dubai, ensuring that they meet all the relevant immigration requirements.
Accounting and Bookkeeping
Chesterfield can provide businesses with expert accounting and bookkeeping services, ensuring that they stay compliant with local regulations and take advantage of all the tax incentives available to them.
Our legal team remains on hand to support businesses and provide them with legal advice and assistance on a range of matters related to business setup and operation in Dubai. We ensure that our clients are fully informed and compliant with the latest and most relevant laws and regulations.
Free Zone Setup
Chesterfield can help businesses establish themselves in one of Dubai’s many free zones, ensuring that they take advantage of all the tax incentives available in these zones. We provide advice on the best free zone to suit your business’s unique needs, and handle all the necessary paperwork and legal formalities to ensure a seamless and hassle-free setup.
Contact Chesterfield for Tax Incentives in Dubai
At Chesterfield, we take the individual needs of our clients very seriously. We remain on hand to support you with your every need and requirement, no matter how big or complex it may be.
If you are considering establishing your business in Dubai and would like to take advantage of the range of tax incentives available, contact Chesterfield to speak with one of our advisors.