What are the tax regulations for businesses in Dubai?
While Dubai offers tax-friendly policies, businesses must comply with VAT and other financial regulations. Learn how to stay compliant.
Dubai’s tax policies are designed to attract businesses with minimal taxation, but companies must still comply with Value-Added Tax (VAT) and reporting requirements.
VAT Overview
The UAE introduced VAT at a 5% rate in 2018. Businesses with a turnover of AED 375,000 or more are required to register for VAT, submit quarterly returns, and charge VAT on relevant transactions.
Tax Filing Requirements
Companies must file VAT returns on time to avoid penalties. All invoices issued must comply with VAT guidelines, including the VAT registration number and the applicable tax amount.
Corporate Tax Exemptions
The UAE does not impose corporate income tax on most businesses, except for those in sectors like oil & gas or international banking. Freezones also provide tax exemptions, making them attractive to international companies.
Staying compliant with VAT and filing regulations ensures your business avoids fines and maintains good standing with UAE authorities.