Sharjah Tax Planning Strategies @ Healy Consultants

Sharjah Tax Planning Strategies
Sharjah is part of the United Arab Emirates, a collection of Emirates in the middle east, collectively making the UAE a country. They are unified in many aspects, but each Emirate has their own tax decree, slightly differing from Emirate to Emirate. This is where tax related issues can get slightly complicated.
1.	As per the Sharjah Income Tax Decree 1968, tax shall be imposed on every chargeable person.
2.	A "chargeable person" is a corporate body, regardless of whether it is a Sharjah-resident corporation, unless under agreement with the ruler to exemption from taxation.
3.	Although these are the current taxation laws, they are not practiced. The UAE imposes none of the following taxes:
	i) Personal Income Tax ii) Capital Gains Tax iii) Value Added Tax iv) Withholding Tax v) Corporate Tax
4.	There is however, legislation in place for the three largest Emirates: Abu Dhabi, Dubai and Sharjah that stipulates oil, gas and petrochemical companies and foreign banks have to pay taxes.
5.	While there is no personal income tax or corporate tax in effect, there are some other small surcharges in place.
6.	Customs duty is levied on to most goods imported into Sharjah at a rate of 5 per cent on the item CIF (cost, insurance and freight) value.
7.	Individuals are also subject to municipality service charge, it is basically a service tax when patronising restaurants (between 5-10%) or hotels (15%). This is in place to nurture the growing tourism industry in the UAE.
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For more information on Sharjah company set up, please email email@healyconsultants.com or telephone us at (+65) 6735 0120.
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