UAE Business Climate
The United Arab Emirates is a "real" country with a "real economy" with a population of approximately more than 4 million. It has an established history of international trade, finance and business, and today it is one of the fastest growing countries in the world with one of the highest standing of living.
Important aspects to be examined may be outlined as follows:
- Political and acomonic stability of the jurisdiction
- The availability of a modern and flexible legislative framework
- Simple incorporation and filling requirements
- The availability of Double Taxation Avoidance Agreement (DTAA)
- State of the art banking system
- State of the art telecpmunication facilities
Doing business in the UAE is very attractive due to the following reasons
- No personal income and capital taxes
- No corporate taxation
- 100% repatriation of capital and profits
- No currency restrictions
- Competitive import duties (5% with many exemptions).
- Modern efficient communication facilities
- Abundant and inexpensive energy supply
- Simple staff recruitment procedures
- Competitive freight charges
- Competitive real estate costs.
- Easy access to both sea and airports.
UAE CORPORATE TAXATION
There is no corporate tax or personal tax in the UAE.
The only exceptions to this are oil producing companies and branches of foreign banks.
UAE implemented VAT at the rate of 5% on 1st of January 2018.
A business must register for VAT if its taxable supplies and import exceed AED 375,000 per annum.
It is optional to register for VAT for business which supplies and imports exceed AED 187,500 AED.
Registered business and traders will charge VAT to all supplies of goods and services and deemed supplies all of their customers at the prevailing rate and incur VAT on goods/services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.
UAE CURRENCY AND EXCHANGE RATE
There are no exchange controls in the UAE and its currency, the UAE Dirham, is freely convertible.
The Dirham is linked to the US dollar, the currency by which oil prices are measured.
The exchange rate has remained at Dh 3.675 = US$ 1 since 1977.
Corporate ownership and business ensures beneficial owner`s confidentiality.