Company tax in Dubai

Corporate tax in Dubai (UAE)

Domestic companies and freezones:

0% corporation tax:
For most companies operating in Dubai, there is no corporation tax. This is especially true for companies within the various free trade zones, where they can benefit from tax breaks and incentives, including 100% foreign ownership and full exemption from corporate tax. Note that your Freezone company in Dubai must be qualified as "Qualifying Free Zone Person (QFZP)", otherwise freezone companies in Dubai can now also be taxed with 9% corporation tax.

Foreign branches:
Foreign companies operating in Dubai through branches or subsidiaries are also generally exempt from corporation tax, as long as their operations do not involve specific sectors such as the oil and gas industry or the banking sector (see below).
Specifika sektorer:

Oil and gas industry:
Companies in the oil and gas industry are exempt from these general tax exemptions and are subject to tax rates that can vary but are often significantly higher, up to 55% on profits.
Banksektorn: Utländska banker som opererar i UAE är också föremål för en särskild skattesats, vanligtvis omkring 20 %.

Value Added Tax (VAT):
The UAE introduced a 5% VAT in January 2018, but this does not affect corporate tax structures. VAT is applied to most goods and services but has a low percentage compared to many other countries.

Advantages of starting a business in Dubai

Tax exemption:
The main advantage is the almost total tax exemption for most companies, especially those operating in freezones.

Freezones:
Dubai has several free trade zones where companies can benefit from full ownership rights, no import or export duties, no currency restrictions and the ability to repatriate all profits and capital.

Strategic location:
Dubai serves as a central hub between Asia, Europe and Africa, making it an ideal location for international trade and logistics.

Advanced infrastructure:
Dubai offers modern infrastructure, including advanced transport and communication networks, making it attractive to businesses in many industries.

Business-friendly environment:
Dubai is known for its business-friendly environment with fast and efficient bureaucracy, which facilitates business start-up and operation.

Talent and workforce:
Dubai attracts talent from all over the world, giving companies access to a diversified and skilled workforce.

No restriction on currency flows:
Companies can freely transfer profits and capital, facilitating international business and investment.

Summary of starting a company in Dubai
Dubai offers a very attractive tax environment for companies with zero corporate tax for most companies, especially within the free trade zones also known as Freezones. The few exceptions apply to specific sectors such as the oil and gas industry and foreign banks. The combination of tax freedom, strategic location, modern infrastructure and a business-friendly environment make Dubai one of the world's most attractive places to start and run a business.