Tax Planning and Tax Lawyers:
There are many types of taxes that are charged as per their specific rules and regulations all over Dubai. Understanding the types of taxes and the strategies that can minimise tax liabilities is a speciality of Tax Lawyers and Tax Legal Consultants in Dubai. They can not only help in understanding the laws associated with taxes but can also suggest legal ways to minimise taxes.
Rules and Regulations for Tax-Free Zones
Oil companies and foreign banks are charged with corporate tax. For the time being, industries other than oil companies and foreign banks are exempt from corporate taxes. There are certain areas that are considered free zones and the businesses registered in those areas are exempt from corporate taxes. These exemptions are usually available for a certain period of time but can be extended. The rules and regulations of the tax-free zones are different as compared to the rules and regulations of the areas where corporate taxes are charged. Given the diversity of rules and regulations and the impact of corporate taxes, corporate tax lawyers specialise in dealing with the needs of corporations and help corporations deal with taxes as per legal requirements. In addition to corporate tax lawyers, personal tax lawyers in dubai specialise in the matters of individual taxation and help individuals with their taxes and ensure that their clients do not become liable to legal issues.
Income Tax and Other taxes in Dubai
Although income tax is not charged from individuals in Dubai, there are multiple other taxes that are charged. There are two major types of taxes that impact individuals. Excise tax and value-added tax. Excise tax is levied on those products which are either harmful to the environment or are harmful to human health. These products include carbonated drinks, energy drinks, tobacco and tobacco products. Value-added tax is being charged in the UAE from 1st January 2018 at the rate of 5 per cent and is charged on all major products and services.
Read About VAT Here
In addition to the above-mentioned taxes, tourist facilities in Dubai have additional taxes. Restaurants, hotels, resorts etc. usually charge 10% tax on room rate, 10% service tax, 10% municipality fee, 6% tourism fee. Many hotels in Dubai charge a Tourism Dirham Fee depending on the category of the hotel.