The United Arab Emirates (UAE) is one of the best places in the world to start or grow a business. Many people worldwide come to the UAE to do business because it is safe, modern, and offers many tax benefits of Doing Business in the UAE .  If you plan to start a business in the UAE, JAKS is here to help. We offer accounting outsourcing services and support to make your business journey smooth and successful.

Benefits of Doing Business in the UAE

Here are some of the benefits of doing business in the UAE;

1. No Personal Income Tax

One of the most significant benefits of living and working in the UAE is that there is no personal income tax. This means:

• You don’t pay tax on your salary.
• You don’t pay tax on other personal income like rent, dividends, or investments.

This allows people to take home more money than people in countries that collect income tax. Because of this, many professionals and business owners like to work and live in the UAE.

2. Low Corporate Tax

In the past, businesses in the UAE didn’t have to pay any corporate tax. But starting from June 2023, corporate tax at 9%  was introduced. However, If a business earns less than the specified amount, they don’t have to pay any tax.

This means:

• Small businesses don’t have to pay corporate tax.
• Big businesses only pay a small 9% tax, which is still very low compared to other countries.

In many other countries, businesses pay between 20% and 30% in taxes. So, the UAE is still very business-friendly.

3. Free Zones with Special Tax Offers

The UAE has over 40 free zones in different parts of the country. These free zones are special areas where businesses get extra tax benefits. Some of these benefits include:

• 0% corporate tax for a set number of years.
• No import or export tax.
• 100% foreign ownership (you don’t need a local partner).
• Easy process to set up a company.

Some popular free zones include Dubai Internet City, Jebel Ali Free Zone, Abu Dhabi Global Market, and Sharjah Media City. Free zones are great for businesses in technology, media, trading, health care, and many other industries.

4. No Withholding Tax

In some countries, a tax is taken when you send money (like dividends, interest, or royalties) to another country. This is called withholding tax. However, in the UAE, the withholding tax rate is zero. This means:

• You can send money to other countries without paying extra tax.
• This makes international business easier and cheaper.

5. Double Tax Avoidance Agreements

The UAE has signed agreements with over 130 countries to avoid double taxation. These agreements make sure that:

• You don’t pay tax twice on the same income in two countries.
• Your business is protected when dealing with international clients or partners.

This is very helpful for companies in more than one country.

6. No Capital Gains Tax (in most cases)

When you sell something like a property or shares and make a profit, it’s called a capital gain. In many countries, this profit is taxed. However, in the UAE, there is usually no capital gains tax. So:

• You can keep the full profit if you sell an asset and make money.
• This helps people grow their investments without losing money to taxes.

7. Low VAT (Value Added Tax)

In 2018, the UAE started a VAT system. The VAT rate is only 5%, which is low compared to many countries. VAT is a tax added to goods and services. But:

• Some things, like healthcare, education, and food items, are exempt or zero-rated.
• Businesses can also claim back VAT they pay, which helps reduce the cost.

8. Easy and Transparent Tax System

The UAE makes it easy to manage taxes. Most tax work can be done online through the Federal Tax Authority (FTA) website. The rules are clear, and the process is simple, saving businesses time and money.

The UAE is one of the best countries in the world for doing business. Its friendly tax system helps people and companies keep more of their money. The UAE allows businesses to grow easily without personal tax, low corporate tax, tax-free zones, and simple rules.

The UAE is a smart choice if you plan to start or expand your business. You can enjoy higher profits, fewer taxes, and a supportive environment for success. 

Starting a business or want to know your company’s value? JAKS is a trusted business advisory firm in the UAE. We help you start your business, company setup, find out what your business is worth, pricing between branches, accounting, and tax work. 

Our team knows the UAE rules well and will guide you step by step. You can relax and grow your business while we handle the rest. Contact JAKS at +971 503372712 or email [email protected]. We’re here to help you every step of the way.