No income tax
In Dubai, one of the most attractive features for individuals and businesses alike is the absence of income tax. Unlike many other countries, Dubai does not levy income tax on individuals, providing a significant financial advantage for residents and expatriates.
This policy contributes to Dubai's appeal as a global business and lifestyle destination, fostering a conducive environment for economic growth, entrepreneurship, and wealth accumulation. By retaining more of their earnings, individuals and businesses in Dubai have greater disposable income to invest, spend, and save, driving consumption and fueling economic activity.
Favorable corporate tax
Dubai offers a business-friendly environment with competitive corporate tax policies for companies operating in Freezones and on the Mainland. Generally, both Freezone and Mainland companies are subject to a corporate tax rate of 9% on profits exceeding 375,000 AED. However, certain Freezone companies may qualify for exemptions from corporate tax if they meet specific criteria as a "qualified free zone person" and their revenue qualifies as "qualified income". This exemption allows eligible Freezone entities to operate without the burden of corporate tax, providing a significant advantage for businesses looking to maximize profitability and expand their operations within Dubai's dynamic market.
In contrast, Mainland companies outside Freezones benefit from the same competitive 9% corporate tax rate on profits above 375,000 AED. This favorable tax rate, coupled with Dubai's strategic location, state-of-the-art infrastructure, and conducive business environment, makes Mainland company setup an attractive choice for businesses seeking to establish a presence in the UAE. Both Freezone and Mainland setups offer unique advantages tailored to different business needs, ensuring companies can thrive and contribute to Dubai's vibrant economy.