Tax Refund in Dubai, UAE

A tax refund is the amount of money you get back in case your tax liability is less than the money you paid to the government. Typically, a tax refund is the repayment of an excess of income tax and is calculated per annum. Even if the taxation system of the country is working perfectly well and a taxpayer takes great care while filling in a tax declaration, mistakes can occur. Thus, a tax refund can take place.

Typical case of tax refund would be if the tax payer has overpaid some certain taxes – in such case there may be the tax re-assessment at the year end with the tax being returned. Another scenario would be if some certain type of income is paid, however then this income is transferred to other county and both countries have double tax treaty. In such case part of the tax can be refunded as well.

The taxation system of the UAE offers entrepreneurs and investors from all over the world a tax-free environment facilitating for doing business. This means that individuals and legal entities operating within the jurisdiction of the UAE are exempt of the majority of taxes. There is no income or corporate tax, tax on interest or dividends or withholding tax. Thus, there is no tax refund in Dubai and throughout the UAE as such because the majority of the taxes are absent means there is nothing to be refunded.

VAT Tax Refund in Dubai, United Arab Emirates, for Residents and Non-Residents

The UAE has the VAT tax from January 1, 2018. Its rate is 5%. The respective regulations on tax return are outlined by the ministry of finance of the UAE.

From 2018 – with the VAT introduction in the UAE – residents and non-residents of the country have to occasionally face the Dubai tax and need to know the applicable refund regulations.

For tourists applies the following procedure on VAT return within the export of goods. It is important to note that the applicable regulation is similar to the one in other countries means for VAT return the receipt must be available, VAT return form is to be filled in and the goods shall be in the original packaging.

For the VAT return for companies - there is the clear procedure on its return by goods export.