New 9% Tax in Dubai: The TRUTH | Summary and Q&A

TL;DR

Dubai and the UAE will implement a nine percent corporate tax in 2024. Free zone companies and personal income will not be subject to this tax.

Key Insights

• 🚕 Dubai and the UAE will implement a nine percent corporate tax in 2024, but personal income and capital gains will remain untaxed.
• 🚕 Free zone companies will be exempt from the corporate tax, but may still need to file tax returns and undergo auditing.
• 🥶 Companies that have Mainland income and free zone income should separate them to ensure proper tax filing.
• 👻 Taxes paid to other countries can be deducted from the taxes owed for Mainland income.
• ℹ️ You should consult a knowledgeable source when seeking information about auditing and tax returns, as many accountants in Dubai may not have accurate guidance.
• 👨‍💼 Registering for value-added tax (VAT) is recommended for businesses operating in Dubai and the UAE.
• 🚕 High-tax countries are pressuring Dubai and the UAE to introduce taxes, and the corporate tax is a response to this pressure.

Transcript

this is a no guide on the new nine percent corporate tax and the new regime that is going to come to Dubai and the UAE in a couple of months the reality is that we are only subject to corporate tax on income generated here in Dubai and the UAE there's a lot of people out there saying Dubai is going to have taxes oh my God nine percent it's gonna be... Read More

Questions & Answers

Q: Will Dubai and the UAE implement a corporate tax?

Yes, starting in 2024, there will be a nine percent corporate tax in Dubai and the UAE.

Q: Which companies will be exempt from the corporate tax?

Free zone companies will not be subject to the nine percent corporate tax, but they may still need to file tax returns and undergo auditing.

Q: Is personal income taxed in Dubai and the UAE?

No, personal income is not taxed in Dubai and the UAE. Even if you sell products or services in Dubai, you can pay yourself out as personal income and avoid taxation.

Q: When does the corporate tax come into effect?

The corporate tax will begin in the financial year after June 2023, which means companies will start paying the tax from January to December 2024.

Summary & Key Takeaways

• Dubai and the UAE will introduce a nine percent corporate tax in 2024.

• Free zone companies will be exempt from this tax, but may still need to file tax returns and undergo auditing.

• Personal income and capital gains will remain untaxed in Dubai and the UAE.