Tax in Dubai
Dubai offers a favorable tax environment that attracts businesses and investors worldwide. Companies operating within Freezones and on the Mainland benefit from competitive tax policies designed to stimulate economic growth. Both Freezone and Mainland companies are subject to a corporate tax rate of 9% on profits exceeding AED 375,000. However, Freezone entities may qualify for exemptions if they meet specific criteria as a "qualified free zone person" and their revenue is categorized as "qualified income," potentially allowing them to operate tax-free for a certain period.
In addition to corporate tax, Dubai does not levy personal income tax or capital gains tax, further enhancing its attractiveness as a business hub. The city's strategic location, state-of-the-art infrastructure, and business-friendly regulations complement its tax policies, offering companies a conducive environment to thrive and prosper. Whether setting up a new venture or expanding operations, Dubai's tax framework provides certainty and incentives that support long-term business success and sustainability.