Lawyer
Expert in corporate and international corporate law. Has extensive experience in supporting the acquisition of financial licenses in Ukraine, as well as business incorporation in the EU, the United Kingdom, Switzerland, the UAE, and key Asian jurisdictions.
UAE TAX ADVICE
It is no secret that the United Arab Emirates has long been considered an attractive jurisdiction for doing business. This jurisdiction has become a hub for businessmen from all over the world, in particular from the post-Soviet countries.
If we consider in more detail why the United Arab Emirates is in such significant demand among businesses, then we can confidently say about the high standard of living, economic stability, strategic geographical location, as well as attractive tax conditions – all this forms a positive environment for entrepreneurs from all over the world.
Moreover, for many years the country had an attractive tax reputation where no taxes were levied on personal income and most companies operated without any tax pressure.
However, the situation gradually began to change and as a result – since 2018, a value-added tax (VAT) was introduced in the UAE, and since June 2023, a corporate tax began to operate. These innovations have become part of a global initiative to create a transparent financial system and compliance with international standards.
Our Law Firm “Prikhodko and Partners” is ready to provide you with full tax support: from the first consultation to the development of a tax optimization strategy for your business in the United Arab Emirates.
We know all the nuances of the tax system of the United Arab Emirates and offer you not just formal consultations, but full support in tax consulting in the UAE. In addition, we guarantee complete confidentiality, an individual approach and optimal solutions for your business.
We suggest you consider in more detail what taxes exist in the United Arab Emirates
Contrary to popular belief, the United Arab Emirates is no longer exactly a “tax-free zone.” As we noted earlier, the situation has changed dramatically since 2018.
The main taxes in force in the UAE today:
- VAT (value added tax) — 5%. Applies to most goods and services. Registration is mandatory for companies with an annual turnover of more than 375,000 dirhams (~102,000 USD).
- Corporate Tax — 9%. Implemented from June 1, 2023. Applies to net profits of companies exceeding 375,000 dirhams (~102,000 USD) per year.
- Personal Income Tax — not officially implemented, but gradual changes are planned, in particular for non-residents with income from outside the UAE.
- Individual tax obligations in Free Zones. Free economic zones have their own nuances: benefits, tax exemptions, restrictions on activities and reporting.
We would like to draw your attention to the cases in which tax advice is needed
- You are planning to open a business in the UAE and want to understand the tax obligations in advance.
- You already run a business, but you’re not sure if you’re calculating and filing VAT correctly.
- Your company is subject to a new corporate tax and you want to minimize the risks.
- You work in a Free Zone and do not fully understand how changes in legislation affect your responsibilities.
- You are an individual – an investor or an employee and want to find out how to avoid international sanctions or double taxation.
We pay special attention to the main taxes that apply in the United United Arab Emirates
- Value Added Tax (VAT)
Value Added Tax was introduced in the UAE on January 1, 2018. The rate is 5%, which is one of the lowest in the world. However, even such a seemingly insignificant rate requires entrepreneurs to maintain proper accounting and reporting.
If your business has an annual turnover of more than 375,000 UAE dirhams (about 100,000 US dollars), registration as a VAT payer is mandatory. For companies with a turnover of more than 187,500 dirhams, voluntary accession to the VAT system is possible.
- Corporate Income Tax (CIT)
One of the most significant changes in recent years has been the introduction of corporate tax from June 1, 2023. This is part of a broader global initiative to introduce a minimum corporate tax, agreed at the G20 and OECD levels.
The corporate tax rate in the UAE is 0% for annual profits up to AED 375,000 and 9% for profits above this amount.
- Excise tax
Excise duty in the UAE has been in place since 2017 and is applied to goods deemed harmful to health or the environment.
These goods include: tobacco products, energy drinks, and sugary carbonated drinks. The excise tax rate can range from 50% to 100%.
Conclusion
Thus, given the above facts, it can be argued that tax consulting in the United Arab Emirates is not just a legal service, but a strategic tool for successful business in modern conditions.
The tax environment in the United Arab Emirates has changed significantly in recent years, which requires entrepreneurs to have a clear understanding of the current legislation and possible risks. Understanding the tax system and timely response to changes in legislation are key to successful business in this country.
How can we help with tax advice in the United Arab Emirates?
The law firm “Prikhodko and Partners” offers comprehensive tax consulting services for Ukrainian and international businesses operating or planning to operate in the United Arab Emirates.
Our law firm has been supporting Ukrainian entrepreneurs in international law matters for many years and has repeatedly helped businesses enter the markets of the United Arab Emirates, properly structure their activities, and ensure full tax transparency, confidentiality, and a personal approach to each client.
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Are you currently rebuying in Ukraine?
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Are you going to the UAE at the same time?
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Do you need a VAT consultation?
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Do you need a CIT consultation?
5 question
Do you need a PIT consultation?
6 question
Do you need advice on ZUS?
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Do you need advice on current contributions?
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