Interesting facts:
Since 2004, the UAE has been governed by Sheikh Khalifa – the older son of the state’s founder Zayed Bin Sultan Al Nahyan Full versionUntil recently, there was no VAT in Dubai, the UAE. VAT was not imposed on individuals or legal entities and the UAE resembled a huge Duty Free zone. Starting from January 1, 2018, goods in the Emirates are subject to VAT. Its rate is 5%.
Tourists and businessmen visiting Dubai should also take into account that in the UAE there is a minor customs duty tax (about 5%) on the import of goods to the main territory of the country. It does not apply to free economic zones, which makes goods on their territory somewhat more accessible.
Since until recently no VAT was levied, there was no return for this tax in the United Arab Emirates. As for the return of VAT starting from January 2018, the procedure is clarified after the publication of the basic laws regulating issues related to the introduction of VAT.
Dubai has a number of undeniable advantages in terms of doing business. Since there are about 20 free trade zones on the territory of the emirate, it is not subject to income and corporate tax, as well as import and export taxes. This contributes to the efficiency of doing business and its further development.
Another advantage of Dubai is the possibility of obtaining a VAT certificate. This document allows entrepreneurs to be exempt from VAT when buying products in those countries of the world where VAT is levied. That is why many international companies established offices in Dubai long ago. It should be noted that there are no taxes on interest, dividends, royalties, etc. in Dubai, the UAE.
Another undoubted advantage of doing business in the UAE is the existence of many agreements on the avoidance of double taxation. In addition, you can get a certificate of a tax resident in the UAE, which is very convenient for doing business.
Most experts and analysts agree that the UAE has become the true financial hub of the Middle East. The perspectives of the country look secure and promising. A stable and diversified economy, tax-free environment, excellent legal and regulatory framework, a developed infrastructure and a banking system make the UAE a very attractive area for investment and business.
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