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Dubai Tax Consultancy
Dubai tax consultancy is provided by World Company Setup's expert team who are well versed in the legal procedures of United Arab Emirates - Dubai. As of January 1, 2018, Value Added Tax (VAT) of 5% has been implemented in Dubai. It is an important regulation that brings tax liabilities for companies that do business in Dubai and reach a certain size.
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Tax Expert Team in Dubai
Dubai is an attractive center for investors worldwide with its business-friendly environment, strategic location and tax advantages. However, new regulations such as corporate tax, which will be implemented as of 2023, require businesses to manage their tax strategies correctly. At this point, professional tax consultancy services are of great importance.
Overview of the Tax System in Dubai
Dubai has traditionally had a zero income tax policy. However, as of June 1, 2023: Corporate Tax: A 9% corporate tax rate will be applied to net earnings over AED 375,000 per year.
VAT: Since 2018, a Value Added Tax (VAT) of 5% has been applied. These regulations have made it essential for companies to implement proper tax planning.
VAT Rate in Dubai
The VAT rate in Dubai is 5%. This came into effect on January 1, 2018 and is applicable to all emirates in the United Arab Emirates. VAT is charged on the sale of goods and services. This rate applies to most goods and services, however, some goods and services are exempt from VAT or subject to a reduced rate of VAT.
VAT registration in Dubai is an important step for companies to meet their legal obligations and to be included in the VAT system. VAT registration can be mandatory or optional depending on the annual income of the company. By registering for VAT, companies are obliged to collect VAT at a rate of 5% and make VAT declarations. In addition, VAT registration can also offer advantages such as VAT refunds to companies when managed correctly.
One of the most important points to consider when registering for VAT is to submit correct and complete documents and not to miss the declaration dates, as payments and declarations not made on time can lead to serious penalties.
VAT Registration Cost in Dubai
There is no direct application fee for VAT registration in Dubai, but sometimes service providers may charge a fee when processing through the FTA portal. In addition, if it is necessary to work with an accountant or consultant to register for VAT, the fees for accounting services can be around 150-500 USD/month. There may be additional fees for preparing VAT declarations, tax consultancy services and other transactions.
VAT and Corporate Tax Return Processes in Dubai
VAT Return: VAT returns are made monthly or quarterly (every 3 months). Small businesses usually file quarterly returns. The filing period must be completed within 28 days after the end of the period.
Corporate Tax Return: Corporate tax returns are filed at the end of the company's financial year. Companies usually file their returns annually and make payments annually.
Dubai Benefits of Tax Consultancy
The main advantages of getting tax consultancy services in Dubai are as follows:
Ensuring Tax Compliance; Complying with tax regulations prevents heavy fines and penalties. Consultants help companies prepare their VAT returns correctly and meet legal requirements.
Tax Optimization; Professional consultants determine legal ways for businesses to keep their tax burdens to a minimum. In this way, you can optimize your costs and increase your profits.
Strategic Planning; Proper structuring is critical to benefiting from the tax advantages offered in Dubai's free trade zones. Consultants offer the best solutions suitable for your business's field of activity.
Global Compliance; For companies operating internationally, it is important to integrate Dubai's tax policies with other countries. Expert guidance ensures that these processes go smoothly.
VAT Registration in Dubai
There is a certain turnover threshold for VAT registration in Dubai. In other words, whether a company is subject to VAT registration depends on its annual turnover.
VAT Registration: If a company’s annual revenues are AED 375,000 (approximately USD 102,000) or more, it is mandatory to register for VAT. In this case, the company is liable to collect 5% VAT.
Optional VAT Registration: If the annual revenues are between AED 187,500 and AED 375,000, then VAT registration is optional for the company. This means that such companies can claim VAT but are not required to do so.
Documents Required for VAT Registration in Dubai
VAT registration in Dubai is done digitally through the Federal Tax Authority (FTA). The documents and information required for VAT registration can be listed as follows:
- Company's Trade Registry Registration Certificate (Trade License)
- Company's Customer Identification Number (Taxpayer Identification Number)
- Documents Showing the Legal Status of the Business (e.g. contract, activity certificate)
- Identity Documents of Board Members (Passport photocopy)
- Information Explaining the Company's Field of Activity (Explanation of what the products or services are)
Annual Estimated Income and Turnover: When making the VAT registration, it is important to indicate the estimated value of the annual turnover.
FREQUENTLY ASKED QUESTIONS
Dubai Tax Consultancy frequently asked questions.
What is the VAT Rate in Dubai?
The VAT rate in Dubai is 5%. This came into effect on January 1, 2018 and is valid in all emirates in the United Arab Emirates. VAT is charged on the sale of goods and services. This rate applies to most goods and services, but some goods and services are exempt from VAT or subject to a reduced rate of VAT.
Is VAT Registration Mandatory?
Mandatory VAT Registration: If you estimate that your company’s annual revenue is AED 375,000 (approximately $102,000) or more, you must register for VAT. Optional VAT Registration: If your annual revenue is between AED 187,500 and AED 375,000, your VAT registration is optional. However, if you earn this level of revenue, VAT registration may be advantageous for your company.
What are the documents required for VAT registration in Dubai?
• Trade License: Document showing the legal registration of the company. • Identity Documents of Board Members: Passport copy, residence document, etc. • Documents Showing the Financial Status of the Company: Annual income estimate, bank account information, etc. • Company's Field of Activity: Documents explaining the company's field of activity. • Company Contact Information and Address: Information such as office address and telephone number. All these documents can be uploaded digitally to the Federal Tax Authority (FTA) portal in Dubai.
When did corporate tax start in Dubai and how is it implemented?
Dubai will implement corporate tax from 2023. Businesses in Dubai will be subject to a 9% corporate tax rate, but this tax will only be levied on annual profits over AED 375,000 (approximately $102,000). Corporate Tax: The 9% corporate tax rate in Dubai applies to high-income and large companies. However, businesses with annual profits below AED 375,000 are exempt from this tax.
Which Companies in Dubai Must Register for VAT?
VAT registration in Dubai is mandatory for businesses with an annual turnover of AED 375,000 and above. Companies subject to VAT registration are required to collect and pay 5% VAT to the government when selling products or services. Large Companies: Companies with an annual turnover of more than AED 375,000. Small and Medium Enterprises (SMEs): VAT registration is optional for SMEs with annual revenues between AED 187,500 and AED 375,000.
How to Get a VAT Refund in Dubai?
Yes, it is possible to get a VAT refund in Dubai. If a company can show that the VAT it paid for the goods or services it received was more than the VAT it collected on the products it sold, it can request a VAT refund. VAT Refund: VAT registered companies can apply for a refund by calculating the difference between the VAT it paid and the VAT it collected during the VAT return. The refund application is made through the Federal Tax Authority (FTA) and refunds can be made under certain conditions.
CLIENT REVIEWS
What do our clients say about us?
Experiences shared by clients whose company formation and corporate processes we have managed across multiple jurisdictions.
“The World Company Setup team was extremely helpful when I established my company in Estonia and provided excellent service. They guided me through every step and helped complete the administrative procedures quickly and smoothly. Their professionalism and client-focused approach made the entire process much easier and more efficient. I strongly recommend them to anyone planning to form a company in Estonia.”
“They managed a difficult and demanding process perfectly from beginning to end. Their team is highly experienced. World Company Setup is the right firm for establishing a company abroad and managing every stage correctly. I strongly recommend them.”
“It was invaluable to work with a trustworthy and patient team throughout my company formation journey in Dubai, from the initial decision through incorporation and post-formation accounting. I confidently recommend them.”
“I thank the entire team, especially Mr Turgut and Ms Gülhan, for their attention and for helping us complete our company formation procedures quickly and without difficulty from beginning to end.”
“The team is highly experienced in company formation and bank account opening in Singapore. Each department works separately, which makes the process more professional. I am still receiving accounting services from them. Special thanks to Ms. Ulanda for her support.”
“I chose to set up a company in Hong Kong due to tax advantages and worked with World Company Setup for the process. Everything was handled quickly, transparently, and professionally. They make business management much easier and offer great value for money.”
“I was struggling to adapt to accounting processes in Dubai. The World Company Setup team provided both training and hands-on support, making it easy for me to manage everything efficiently. Their approach is professional and educational.”
“Even though we had established our company, we could not open a bank account for several months. After starting to work with World Company Setup, they helped us open our bank account within just one week. Their fast and solution-oriented approach made a big difference.”