Taxation in the UAE: Five Things Expatriates Should Know

From the presence of world-class infrastructure to expat-friendly legislations, the UAE is nothing short of a paradise for the expats.A prime reason behind it is the fact that the residents of the region enjoy a luxurious quality of life along with ample business opportunities. The UAE is acknowledged all over the world for its expat-friendly tax system. If you are an expatriate planning company setup in Dubai, here are the five things to know about taxation in the region.

1. No Income Tax Gets Levied In the UAE
Income tax, an expense bothering the working population in every country, does not get levied in Dubai. When you work anywhere in the UAE, your salary slip will have almost the same net and gross income. The tax-free benefit aims at attracting more talents and global businesses to the region.

2. There Are Certain Conditions to Tax-Free Benefits
When you opt for business setup in the UAE, keep in mind that tax-free facilities are for people who permanently move here. You will have to declare yourself a non-resident for taxation in your country of origin. Thus, before moving to the country, make sure that the taxes remain sorted in your home country.

3. Detailed Corporate Tax Laws Exist In the Region
Read up on the corporate taxation and accountancy laws of the region before setting up operations in the region. Foreign gas and oil firms get taxed at fixed rates set by the government. Even foreign banks with branches in the UAE need to pay taxes by the decree.

4. There Are Many Types of Indirect Taxes in the UAE
Contrary to popular belief, a number of indirect taxes exist in the emirates. For example, services charges exist in the hospitality sector. Whether you eat at a restaurant or stay at a hotel, ten per cent tax will get added to your bill.

5. You Are Safe From Paying Double Taxes Due To the DTAA
The emirate has the Double Taxation Avoidance Agreement signed with more than sixty countries across the globe. Under this agreement, the residents will not have to pay taxes to two governments for the income earned in the nation.

The citizen-friendly tax system in the UAE helps you to avoid hassles as you settle in the region. Thus, you can ease to the lifestyle of the country much more easily.