• English
Dividend Tax Calculator in the UAE

Dividend Tax Calculator – Your New Indispensable Tool for Calculating Dividend Tax

There is a very mild taxation scheme In the UAE. Only companies that work in the gas oil industry (tax rate up to 55%) and banking institutions (tax rate up to 20%) are imposed with taxes here. But still there are some preferences and exceptions influencing tax calculation: if you registered a company in one of the free zones, your tax rate would be zero, including personal income taxes, dividend taxes, royalties taxes, and other basic taxes that businessmen from developed countries used to, so it seems rather easy to calculate your taxes. However, there are also some features in this issue. The fact is as follows: if you are going to do business in this country, you are still under the tax rules of your country. But there is good news: the UAE has signed several dozens international double taxation treaties. In this article, we will look at some of the nuances of this issue and our universal tool for entrepreneurs and individuals – dividend tax calculator.

So, the Government of the United Arab Emirates has already signed agreements with more than seventy countries according to which their citizens do not have to pay taxes twice if they are doing legal business in the country. And this list will expand in the future, which will lead to an increase in the flow of foreign businessmen who want to open a company here, as well as to an inflow of employees since the salary here is about that in the most developed countries of the Western world. Expats leading their activities in the Arab Emirates can completely forget about taxes on assets, dividends, interest, value-added, royalties, capital gains, income, etc. However, to deal with the subtleties of personal taxation and tax calculation in each particular case, you will have to go into the issue of taxation of dividends, or you can use our universal tool – the dividend tax calculator.

How to calculate tax on qualified dividends?

What are the features that a director and shareholders of limited liability company in the UAE may face in the matter of taxes on dividends? Let us consider for example the case when a business owner in the UAE is a UK citizen. Thus, according to the agreement, dividends paid by a UK resident company to a UAE resident beneficiary will not be taxed in the UK, unless the dividends are paid from profits received directly or indirectly from real estate through an investment mechanism. In this case, the tax levied in the UK should not exceed 15% of the gross amount of dividends. But there are some other nuances – this tax is not applied if the beneficial owner of dividends is a pensionary structure in the UAE. So, as you can see, there are many different situations on the issue of dividend taxation that has to be taken into account. In order to these make calculations easier and quickly determine the required tax amount, it is better to use the new specialized tool – dividend tax calculator.

How much tax do I pay on dividends? How to calculate tax credit on dividend payment? Do not worry about these questions. Entrust your tax calculation to qualified professionals. Our specialists will be happy to help you to calculate tax on dividends and help you use our dividend tax calculator.