Tax Planning in Dubai
Tax planning in Dubai is relatively simple compared with most jurisdictions. It is essentially a 'no-tax' jurisdiction with relatively simple tax laws compared to many 'onshore' jurisdictions. When undertaking any tax planning in Dubai, it is important to note the following:
1. In general, companies in Dubai do not pay any corporate, value-added, withholding or capital taxes. In practice, only branch offices of foreign banks, as well as oil, gas and petrochemical companies, pay tax.
2. Oil companies pay up to 55% tax on UAE sourced taxable income, which is defined in the concession agreement. Oil companies are also obliged to pay royalties on their output.
3. Banks pay 20% tax on taxable income, which is stipulated in the audited financial statements.
4. Import duty is a standard 4%, although there are exemptions for the following products:
- Food;
- Building materials;
- Medical products
- Items which are destined for Jebel Ali Free Zone, Dubai Internet City or the Dubai International Financial Centre.
5. Because it is part of the United Arab Emirates (UAE), Dubai is obliged to charge a 10% duty on imports of luxury goods.
6. A business properties tax of 10% of the annual rental value is levied.
7. Dubai has signed double taxation treaties with several countries. Under these treaties, profits sourced from shares, dividends, interest, royalties and fees are taxable only in the contracting state where the income is earned.
8. When conducting any tax planning in Dubai, it is important to note that many countries have anti-avoidance provisions which either set minimum levels of tax for income to benefit from tax treaties, or set out lists of low-tax countries which do not qualify under tax treaties.
Contact Us
For more information on tax planning in Dubai, please email 
or telephone Healy Consultants at +(65) 6735 0120.
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