ANNUAL MAINTENANCE OF UAE BUSINESS

The UAE is a low tax country with no income tax and only 9% corporate tax, which can be reduced to zero in some cases, for example, when doing business in free zones. Starting from 2023, all companies registered in the UAE must provide tax reports even if they are exempt from corporate tax. In general, annual maintenance of the UAE companies is straightforward and includes the following:

• Payment for license and office lease for the next year- Updating the bank about company renewal
• Providing annual corporate tax reports
• Annual bookkeeping

UAE VAT

Some companies who sell their products or services in the domestic market of the UAE may be liable for VAT. UAE VAT is very low in comparison to most global countries and it is only 5%. In case a company’s local turnover reaches 375,000 AED, it needs to register with the Federal Tax Authority and file VAT reports quarterly. If the turnover is less then 375,000 AED, there is no obligatory registration. However, VAT would not apply for most of the businesses that carry out the activity outside of the UAE.

CONCLUSION

The UAE is becoming a primary choice of international entrepreneurs. It has been white listed by the EU, it strengthens relations with Europe, UK, Russia and India and other countries. International business registration here is affordable as the prices start from 3,000 USD only. Contact us to find the best solution for your business setup in UAE.