Free zones Dubai
Q&A What are the free zones around Dubai and why do so many people set up companies in free zones
With the aim of facilitating the opening or relocation of foreign companies, a prominent place in the United Arab Emirates is occupied by the Free Zones, which currently number just over thirty.
The companies held there may, under certain conditions, be wholly owned by foreign investors, even before the recent change that makes the same possible for companies in the Mainland, and at the same time can benefit from a tax exemption.
The companies established therein will not pay income taxes nor will they be subject to declaratory obligations.
As for VAT, which in any case in Dubai is just 5%, it will only be payable if the company exceeds certain turnover thresholds, and if it does not fall under exemption cases.
In fact, it should be noted that often, companies established in free zones, operating online and having turnover generated outside the Emirates, are usually also exempt from VAT.
The costs of setting up a company in a free zone vary from free zone to free zone, but tend to be lower than the costs of setting up a company in the Mainland.
The main Free Zones include:
Sharjah Media City Free Zone;
Jebel Ali Free Zon;
Dubai Airport Free Zone;
E-commerce and Media Free Zone;
Dubai Cars and Automotive Free Zone;
Dubai Gold and Diamond Park.
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Remember that laws change all the time and this article may not necessarily take into account the law in force at the time you are reading it; therefore it is essential to contact an international tax lawyer in order to check the law in force when you decide to relocate or move abroad.
It is always very important that you speak to your international tax attorney before starting any type of tax planning or relocation of your business.
Do not hesitate to contact us if you would like us to provide you with the contact information of highly qualified international tax lawyers who are specifically qualified to help clients in your situation.
tag: dubai tax haven, dubai tax heaven.
Disclaimer: Always speak directly to an attorney; blog posts are not a sufficient source of information to make decisions, may not be appropriate for your situation, may not be well researched, and may not be current at the time you read them, always speak directly with an attorney.
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