Taxes for business in the United Arab Emirates

Taxes for business in the United Arab Emirates

You may have heard that the UAE is a tax haven. The reason for this was the lack of income tax payments for companies and individuals. There is no tax on royalties and dividends. No framework for the withdrawal of profit and capital of the company. There is no property tax. There are no currency restrictions.

For businessmen opening a business in the United Arab Emirates, registration for paying taxes needs to be considered. VAT and excise taxes are generally levied on businesses in the UAE.

As for excise taxes, they include tobacco products, energy drinks and carbonated drinks. Also, products that adversely affect the human body may fall under excise taxes. To register, you can use the online service. You must submit your tax return within 15 days after the end of the tax period. Tax rates differ and depend on the type of product, for example:

- Tobacco: 100%;

- Carbonated drinks: 50%;

- Smoking devices (electronic): 100%;

- Energy drinks: 100%.

Companies registered in the United Arab Emirates, outside the free economic zone or inside it, are required to pay VAT at the rate of 5%.

It is necessary to register if the supply of taxable goods exceeds 375 thousand dirhams per year, if the amount is less, then you do not need to register.

At the end of each tax period, a tax return must be filed within 28 days.

There are 2 types of value added tax periods in the UAE:

1 - Companies with a turnover of up to 150 million dirhams need to submit a declaration once every quarter.

2 - Companies with a turnover of more than 150 million dirhams need to submit a declaration every month.

But for all enterprises, one rule applies: storage of documents on expenses and VAT invoices.

Our team will be able to help you with the administration of all processes in your business!