Business opportunities and tax residency in Dubai

PUBLICATIONS / Newsletters / 2016 / Newsletter August

Business opportunities and tax residency in Dubai

Dubai has become an attractive jurisdiction for international companies. The Emirate has a unique culture with a good standard of living attracting visitors and investors from different parts of the world. Certainly, the most important aspect that many investors consider is the favourable tax regime with no income tax for individuals, capital gains taxes, inheritance taxes, and no corporate taxes (except for foreign gas and oil production as well as foreign banks in the UAE).

The UAE is competitive with other conventional tax heavens not only due to the favourable tax regime but also due to many international double taxation treaties. Currently, the UAE has signed more than 80 double taxation treaties. This year the UAE has signed agreements with Kosovo, the United Kingdom, Jordan, and South Africa.

An individual can benefit from the double taxation treaties and get the tax residency certificate. The easiest way to get a tax residency certificate is to form a free zone company that will allow to get a residency in the UAE and apply for tax residency certificate. In addition to eligibility for tax residency, an entity in the free zone has the following benefits:
  • import and export of goods is duty free
  • customs privileges applicable to the import of equipment and machinery
  • 100 percent foreign ownership
  • no restrictions on hiring expatriates
Tax Residency
A resident of the UAE can become a tax resident provided that the country of origin has signed the double taxations agreement, and it is effective. The simplest way to become a resident of the UAE is registering the company in Dubai.
Moreover, the investor can get resident visas for the family. This option is the most efficient, reasonably priced, and the process takes one to two months depending on the free zone choice. As a resident of the UAE, the investor/shareholder can enjoy the conditions of the double taxations agreement by getting the tax residency certificate.

Dubai has indeed become an international financial centre with advanced infrastructure and top financial institutions. As the worlds’ travel and business hub, it has also become the destination for top health care service providers, university branches, and international companies. Setting up a company in Dubai will give the aspiring entrepreneur the opportunity to benefit from the tax regime and coordinate their business smoothly.

If you are interested in setting up an entity in Dubai please contact our regional director Mr Mahmood Tassadaq at m.tassadaq@freemontgroup.com. Mahmood has an extensive experience in the field and can assist you in giving you sound and feasible advice.

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