Financial Benefits of Starting Business in Dubai

Dubai is the business hub of the entire Middle East, and the benefits of starting and conducting business in such an entrepreneurial environment are limitless. The support from the government, law, the many tax benefits and the splendid infrastructure create an environment of ease to conduct business activities. While that remains as appealing as it is, there are added financial benefits of starting a business in Dubai as entailed below.

Value Added Tax: To pay or not to pay

VAT was introduced in UAE as 2018 had commenced. VAT was brought in so that the government could continue to provide quality public services to the country. Customers were liable to pay 5% value added tax on their purchase to the business owner who then paid to the government. But not everyone needs to pay VAT – Only companies with taxable supplies and imports exceeding AED 350,000 per year need to register for VAT in the UAE are liable to pay VAT.

Avoiding any capital gains tax

In most countries, a business has to pay significant taxes on some of its assents upon selling them off if there is profit gained in the sales. In Dubai and the rest of UAE, the capital gains tax is null and void, so it is a good place to do business and sell off assets that have increased its value over time if the need arrives. This is especially applicable in those industries that deal with property and real estate.

No corporate tax

Having to pay corporate tax can be a huge burden. Corporate tax rates are very high and eat up most of the income gained by the company. In UAE, you don’t have to worry about paying corporate tax at all unless you are in the oil exploration or banking sectors. You could rather put the income into expansion or other fields of the betterment of your business.

Taxes from Tourism help your business

Each person staying at a hotel is liable to pay a small hotel tax and departure tax. The percentage rates of those have reduced over the years, which in turn has increased tourism, encouraging people to travel to Dubai even more. This tax collected in turn helps the government to better the tourism and hospitality industries.

The Dubai economy is a fantastic place to see your business boom!

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Originally posted 2021-09-29 04:03:42.