Corporate and other taxes in Dubai, UAE – overview, tax rates, tax planning
Although countries of the world announce their support to small and corporate business, everything is not so simple in practice. The main difficulty for small and corporate business remains the excessive tax load (high corporate and income tax rates are a great problem for a new business). According to independent experts, this is a major obstacle for growth and active business development.
Therefore the private entrepreneurs and corporate owners tend to abandon jurisdictions with high tax rates. Business under the threat of government restrictions and the unfavorable tax climate has no long-term prospects. More and more businessmen pay their attention to the other countries, which are more favorable for business and the UAE is one of those.
Corporate and other taxes in the Eurozone
Even though countries of the EU provide business with the relative stability and opportunities for development, there are also certain disadvantages there. First of all, these are high tax rates and increased attention from the fiscal and regulatory authorities (to corporate business first of all). According to the official statistics, we can say that the lowest income tax rate in the Eurozone is about 25%. In the countries of the EU, a tax rate can reach from 30 to 52%.
Among the European countries, which apply the highest rate of income tax, the following jurisdictions can be singled out:
- Germany: the income tax rate ranges from 14% to 45%;
- France: an average income and corporate tax rate is about 45%;
- Austria: tax rate ranges from 36% to 50%;
- UK: an average tax rate is 45%;
- Sweden: the income and corporate tax rate ranges from 32% to 57%;
- The Netherlands: the income and corporate tax rate range from 37% to 52%.
Among the countries with a minimal tax rate, the following member states of the EU can be singled out:
- Poland: the income tax rate can range from 18% to 32%;
- Romania, Hungary: tax rate is 16%;
- Lithuania, Czech Republic: tax rate is 15%;
- Bulgaria: an average income tax rate is 10%.
As for the income taxation of the enterprises and companies (corporate tax rates), one can cite the following figures:
- Cyprus, Bulgaria: the corporate tax rate is 10%.
- Germany: corporate tax is 15%;
- Sweden: the corporate tax rate is 22%;
- The Netherlands, Austria: corporate tax rate is 25%;
- France: corporate tax rate is 33,3%;
- Belgium: the corporate rate may increase to 40%;
- Malta: corporate tax rate can be up to 35% of the income.
Taxes are the main source of the country budget for the countries of the EU. That is why there is a strict attitude towards the financial component of the foreign corporate business. Thus, we see that unfortunately Europe is not ideal regarding building and developing a profitable corporate business.
But still, businessmen also have the opportunity to create a completely tax-free business and not to attract too much interest from the fiscal and regulatory authorities. If you wish to have a corporate business without any complications with the financial institutions and high rates of profitability, then see in details the UAE.
No corporate taxes in Dubai, UAE – an optimal tax haven
More and more investors and entrepreneurs around the world discover the jurisdiction of the UAE. Today, probably there is no person who has not heard about the incredible economic growth and rapid development of the UAE. Every year the ambitious large-scale projects, which impress with the magnificence the entire planet, are implemented on the territory of the UAE.
Regarding creating a business, the main advantage of the jurisdiction of the UAE is the fact that the UAE is not included in the blacklist of the countries, which contribute to the money laundering. Private business, in the UAE, carries out its economic and commercial activities legally and free. The international experts have already recognized the relationships between the private business and government in the UAE as a transition to a new level of civilized market relations.
The system of government management in the UAE allows companies to make profits and to develop their business without the excessive government and financial control. The government of the UAE cooperates actively with the international organizations, which resist the financing of international terrorism and money laundering of criminal origin.
The UAE can be considered true tax heaven. There are no income taxes both for foreigners and for locals in free zones and on the mainland in all the Emirates, including Dubai, and Abu Dhabi, there are no corporate taxes in the UAE at all.
The UAE: opportunities and prospects of the growth for the corporate business
Registration of a company in the UAE will allow company owners and members of their families to obtain a residence visa for the legal stay in the territory of the country. Depending on the carrying out business activities, you can register a local or an international company in the territory of the specialized economic zones with the special economic status in the UAE.
The government policy of UAE is aimed at the feasible support of the private business and provision of the most comfortable conditions for the economic and commercial activities. The entrepreneurs and the investors from abroad can count on the legal support and optimization of business to the existing standards in the UAE.
Real estate as the main investment tool in the UAE
Taking into account the rapid economic growth of the UAE, potential investors from all around the world began to show the great interest in the acquisition of real estate in the UAE. Observing the increasing demand, the Government of the UAE has taken some countermeasures and actions. If formerly the real estate in the UAE was not available for the foreigners, then recently a lot of Arab principalities have allocated special areas, where the foreign citizens may acquire the real estate into the unlimited ownership.
Business in the UAE is free from any taxation, transparent conditions for carrying on business, modern infrastructure, the favorable location of the country regarding protecting the property rights and investment assets. You can live and carry on business in the UAE and no longer worry about the future of the company. Use the UAE for the development of the new markets and the expansion of the existing business.