Dubai’s tax regime is one of the good reasons why foreign financiers are starting businesses there. The metropolis emboldens foreign direct investments (FDI) not only through its satisfactory free zones but also through a general low taxation system that enforces very few taxes on its businessmen and residents. Our Dubai accountants can legally advise you, in order to understand the taxation procedures in Dubai, including those connected to dividend revenue.
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Dividends in Dubai
A company incorporated in Dubai does not have to pay tax on the dividend income obtained from local or foreign investment. It is good to know that Dubai enforces no withholding tax on dividends paid by local or foreign receivers. Also, dividend payments are not tax-deductible from the paying corporation. Stockholders of Dubai businesses can be allowed to receive dividend payments, as per the enterprise’s inside rules and principles. The method in which the dividend payment is granted to the investors is selected by the individual. Branches in Dubai that pay dividends to a parent corporation overseas can profit from the double tax treaties signed by Dubai and other nations.
Our accounting firm in Dubai can offer extra information and guidance about these kinds of treaties and how they influence your business in the city, apart from the rules regarding dividends.
Our experts offer audit services in Dubai for those who own companies in this city or in the UAE. This type of service is important in knowing the financial situation of the company, with the help of the reports prepared by the auditors. it is good to know that in this procedure documents such as balance sheets, annual financial statements, and income statements, among others, will be used. Business risks can also be revealed with the support of such financial reports.
Taxation in Dubai
Dubai does not enforce levies on the profits made by corporations and persons. This means that the Emirate does not have an individual income tax and the 9% corporate income tax is valid for businesses with profits of more than AED 375,000 (approx. USD 100,000). Foreign residents who want to invest in Dubai need to submit a few special requests, such as gaining a free trade zone license (if investing in a zone like that), special agreements for hiring local or foreign personnel, and others. Our accountants in Dubai are able to give proper advice and assistance if you want to register a business in the city and can also make all the necessary preparations.
For any other information about the dividend tax for foreign businesses in Dubai or about the investment openings there, please feel free to contact our team of accountants in Dubai.