In some European countries, income tax reaches and sometimes exceeds 50%, while in the UAE there is no income tax at all! While other entrepreneurs pay more than half of their income to the government, Emirati businessmen invest their income in developing and expanding their personal businesses.

According to the authorities, there are no plans to introduce income tax. No matter how you earn money, the tax for you will be 0%.

Unlike many countries where corporate tax can reach 30%, in the Emirates it is 0% for small and medium enterprises. This creates a unique business environment and allows for a significant increase in net profits.

However, it is worth noting that in 2023 the UAE introduced a 9% corporate tax in 2023 for companies with annual revenues of more than AED 375,000 (approximately $100,000). Nevertheless, this remains one of the lowest tax rates in the world.

The VAT rate in the UAE is 5%. This tax is only compulsory for organisations whose annual income exceeds AED 375,000 and for those operating directly in the country. If the business is internationally oriented, VAT is not charged.

Compared to other countries, the UAE has a low VAT rate. For example, in the USA this tax varies from 8 to 10% depending on the state, while in Russia it is 20%.

Opening a company in the Emirates is also about the lack of currency controls. This means you can transfer funds freely both within and outside the country. For entrepreneurs, this creates an excellent environment for international trade and financial management. Moving your business to Dubai becomes even more attractive when you realise that your money can move freely without being subject to strict restrictions.

The UAE tax system is characterized by its simplicity and transparency. This makes the process of setting up a business here much easier. Entrepreneurs can easily understand their tax obligations and minimise the risks associated with tax audits. Consultations on setting up a business in the UAE help to understand all the nuances of local legislation and avoid common mistakes.

Thinking of relocating and doing business in Dubai? The StableGrowz team is here to help! Book a free consultation today and we'll create a personalised roadmap to help you every step of the way!

Contacts

United Arab Emirates, Dubai, Barsha Heights, I-Rise Tower, 29th Floor, Office 5