taxation in dubai
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02/06/2015 TaxationinDubai
http://taxguru.in/incometax/taxationdubai.html 1/2
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TaxationinDubai
Letsdream,letstakeabreather,letstalkaboutTaxationinDubai
Dubai,oneoftheSevenEmiratesthattogetherformUnitedArabEmirates(UAE),hasoneofthemostliberalTaxationsystemsintheWorld.
Dubaimaintainsitsownjudicialsystem,separatefromtheotherEmirates.
CurrentlynoTaxesarepayableonIncomebyIndividualsinDubai,inadditiontothisthereisnoTaxonCapitalGains,noValueaddedTaxandnoWithholdingTaxetc.
InDubai,allCompaniesarerequiredtopayTaxontheirIncomeonaslidingscaleofuptoamaximumof55%,however,practically,onlyOil,GasandPetrochemicalCompaniesandBranchesofForeignBankspayTax.
TaxslabapplicabletoaforementionedCompanies,withtheexceptionofBranchesofForeignbankstowhom20%flatrateofTaxisapplicable,isasfollows:
OnIncomelessthan10,00,000AED,Taxis0%
OnIncomeequaltoormorethan10,00,000butlessthan20,00,000AED,Taxis10%
OnIncomeequaltoormorethan20,00,000butlessthan30,00,000AED,Taxis20%
OnIncomeequaltoormorethan30,00,000butlessthan40,00,000AED,Taxis30%
OnIncomeequaltoormorethan40,00,000butlessthan50,00,000AED,Taxis40%
OnIncomemorethan50,00,000AED,Taxis55%
IfweconvertAEDtoINRthen,intheabovecase,inDubaithereisnoTaxonIncomeofuptoINR1.7Croresapprox.,soundslikeadream,isntit?
Customdutiesareverylow,however,allpropertiesaresubjecttoanannualpropertytaxwhichrangesfrom5%to15%.
DubaiextendsfurtherTaxbenefitstopeopleandorganisationsacrosstheWorldviaDoubleTaxationAvoidanceAgreementswhichithaswithseveralnations.
NodoubtthatdespitebeingsuchasmallEmirate,itattractssomuchofinvestmentandcontinuestoremainprosperous.Thoughithasothercircumstancesinitsfavourbutstill,havingsustainedoneofthetoughestEconomiccrashes,itsregainingitsGold!!!!
(CompiledbyCASahilJollyJolly&Co.CharteredAccountants,Contact:+919999830077,Email:[email protected])
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02/06/2015 TaxationinDubai
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