27/12/2023
Taxation in the United Arab Emirates for Legal Entities
Corporate Tax:
As a reminder, the UAE corporate tax for legal entities is only 9% of profits. This tax is charged only after reaching a turnover of 375,000 AED (approximately 100,000 USD). It is good to see that corporate reporting is done annually, giving businesses ample time for strategic planning and tax optimization.
Value Added Tax (VAT):
The UAE has a VAT rate of 5%. This tax is levied on transactions made within the country. Businesses become eligible to pay VAT after reaching a turnover of AED 185,000 and its payment becomes mandatory after reaching a turnover of AED 375,000. Through quarterly reporting, businesses are able to manage their finances effectively.
Dividends and Salary Taxes:
One of the attractive aspects of taxation in the UAE is the absence of dividend and payroll taxes. This creates a favorable environment for businesses, encouraging investment and attracting talent.
Choices for Your Success:
The United Arab Emirates provides businesses with unique tax advantages, making the country an attractive place to do business. MARRYANNI is ready to provide professional advice and assistance in setting up your business in the UAE.
Contact our experts for More Information!