Dubai Airport taxes - common info, rates, DAFZ description

Dubai International Airport (DIA) is the world’s busiest passenger and freight airport owned by the Government of Dubai. As of today, the airport serves more than 85 million passengers per year. This is far more than the famous Heathrow international airport (London, England). Moreover, this figure grows every year, and the passenger influx doubles every four years. It is expected that the Dubai airport will serve 100 million passengers by 2023.

This international airport is also known for delivering the most cost-effective services. All the passengers are pleasantly surprised by the tax-free Dubai airport prices. In fact, there were no taxes or fees levied on passengers or cargos up unit recently. The first tax was introduced in 2016. It was an exit tax or the so-called “departure fee”. Although this tax is quite new for the UAE, it has been charged for many years already in such well-developed countries as the UK, Germany, China, Australia, etc.

A Dh35 ($9.50) Dubai’s departure fee is collected at the time of buying a flight ticket that is why passengers do not have to make any additional payments when leaving the airport. Thus, this innovation will not complicate the transportation process. Moreover, it will neither blur the Dubai airport tax-free reputation nor change the policy of the tax-free Dubai airport prices.

This fee will apply to practically all passengers, including the transit ones. However, cabin crew, children below two years, and transit passengers with the same arrival and departure flight number are exempted from paying the tax.

The Dubai Government is intended to transfer the gained money to the Dubai Airports Company and then to the Dubai Government public treasury. The introduction of this tax is a right way to support the Dubai airports’ infrastructure development and expansion.

The airport meets all the highest requirements of the International Air Transport Association (IATA) regarding infrastructure, security, quality of services, etc. In spite of this fact, the Government of Dubai continues its further development and expansion.

The Dubai International Airport is considered to be a strategically important transportation facility for carrying out the Dubai Expo 2020. Given this fact, the DIA will undergo significant renovation and expansion before the Global Exposition. The airport is expected to handle the influx of millions of visitors.

The Government of Dubai puts all the efforts to maintain the Dubai airport tax-free reputation and to increase the attractive elements to make the Dubai International Airport the unquestionable leader of international transportation.

Tax-free business in DAFZ

The Dubai Airport Free Zone (DAFZ) is a specialized area that operates side by side with the Dubai International Airport. This Free Trade Zone has already become home for thousands of international companies that operate under the Dubai airport tax-free regime in the most various industries including freight and passenger transportation, aviation, logistics, household appliances, pharmaceutics, etc.

This economic area offers numerous competitive advantages for setting up companies and carrying out tax-free business activities. And this is alongside with the perfect transport connection and active government support.

There are two types of companies that can be set up on the territory of the Dubai Airport Free Zone:

• Free Zone Company (FZCO);
• Branch Office of an existing foreign company.

The permitted number of shareholders (either individual persons or legal entities) in a Free Zone Company ranges from 1 to 50, and the amount of the minimum share capital is AED 1000. In a case of the branch offices, there are no requirements for the share capital to be paid at all.

Businessmen and entrepreneurs may choose from two types of licenses, which are issued by the DAFZ Authority:

• Trade License — various commercial activities including import, export, distribution, and storage of specific products;
• Service License — provision of other specific services.

The DAFZA offers the unique tax-free environment for carrying on profitable businesses. In fact, there are no import or export duties levied on the transportation of goods and other cargoes. Moreover, all the companies and businesses that are registered on the territory of the DAFZA are fully exempted from corporate income and other taxes.

Among the other advantages of the Dubai Airport Free Zone, there is the availability of the highly developed transport infrastructure, governmental support on various business issues and the business-friendly environment.

Conclusion

The Dubai Airport Free Zone is a perfect place for organizing business in the United Arab Emirates. This specialized area offers the entire necessary infrastructure and a business-friendly legislation. Dubai airport is a perfect tax-free area for carrying on profitable business.

Moreover, all the business activities are backed by the efficient transport services delivered by the Dubai International Airport — the modern transportation facility that offers the most advanced and continuously developing infrastructure.