Following the introduction of value added tax (VAT) in 2018 and corporate income tax in 2023, the tax system in the Emirate of Dubai and the UAE has changed significantly. In this compact overview, we summarize the key aspects of the current tax situation in Dubai and the UAE together.
The topic of "taxes in Dubai" attracts many entrepreneurs and investors who want to benefit from tax advantages. The emirate of Dubai has long been considered almost tax-free, but the introduction of a new corporate tax system has raised many questions. The corporate tax is based on the principles of the OECD (Organization for Economic Cooperation and Development) and was introduced to meet international standards and promote transparency.
While income tax still does not exist for private individuals, companies are subject to certain tax obligations:
Not everyone doing business in Dubai is automatically taxable. Taxable groups are corporations and organizations with a business presence in Dubai. These include:
Taxable income includes all income earned by a company in Dubai. This includes:
An important detail is that foreign income is generally not taxed as long as it meets certain criteria.
The taxable base in Dubai comprises all of a company's income after deducting allowable operating expenses and tax-deductible losses. It is important to keep proper accounting records in order to correctly determine taxable income. Operating expenses can include wages, rent and other business costs.
Employees in Dubai benefit from an attractive tax system that offers many advantages compared to Germany. There is no income tax in the United Arab Emirates, which means that you can keep all of your income. There are also no corporate taxes or value added taxes to pay. If you are a resident of Dubai, you are exempt from paying tax in most cases. This makes Dubai a very attractive tax location for employees from all over the world. Whether you are an employee or self-employed, Dubai offers tax relief and incentives that can significantly increase your financial freedom.
Dubai offers real estate investors an attractive tax environment. There is no annual property tax or inheritance tax. The purchase of a property is only subject to a one-off registration fee. The sale of residential real estate is predominantly tax-free.
In Dubai, foreigners can own real estate in special zones (freehold areas) without restrictions. The Golden Visa, which is available for larger real estate investments, offers long-term residency opportunities.
Foreigners can own real estate in special zones (freehold areas) in Dubai without restrictions. The Golden Visa, which is available for larger real estate investments, offers long-term residency opportunities.
Together with the tax advantages, these factors make Dubai an attractive location for real estate investors.
To get an overview of the real estate market in Dubai and the UAE, take a look at our carefully selected real estate portfolio. If you have any questions about real estate in the UAE and Dubai, our real estate experts will be happy to provide you with personal and non-binding advice.
Do you have any questions? Get in touch with us!
The Introduction of corporate income tax in Dubai is a significant step towards greater transparency and international conformity.t. Companies should be prepared for the fact that they are now subject to certain tax obligations. Careful record keeping and expert assistance are crucial to effectively comply with tax requirements and maximize potential benefits. Despite the changing tax landscape, Dubai continues to offer attractive opportunities for businesses and individuals.
Our team of experts at MY Dubai are on hand to provide you with comprehensive knowledge and experience in all tax matters. Contact us today for a no-obligation tax consultation!
Here you will find answers to frequently asked questions about emigration and our services.
Profits up to AED 375,000 are exempt from corporation tax. Profits in excess of this amount are subject to a tax rate of 9 %.
No, there is no income tax for private individuals in Dubai. The income of private individuals is tax-free.
The assessment basis comprises all of a company's income after deduction of permissible operating expenses and tax-deductible losses.
As a rule, foreign income is not taxable as long as it meets certain criteria.
Companies must keep proper accounts in order to correctly determine taxable income and meet their tax obligations. Operating expenses such as wages, rents and business costs must be properly documented.
It is recommended to seek advice from local tax experts to ensure that all tax obligations are met on time and correctly. Well-organized administration and careful bookkeeping are crucial.
Dubai finances its infrastructure and public services mainly through revenues from other sources such as tourism, real estate and oil. The government is also investing in innovative business models and technologies to further boost the economy. By creating an attractive business environment and encouraging entrepreneurship, Dubai has managed to operate tax-free and establish itself as a leading economic center.
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