Corporate tax in Dubai

A tax haven with no income tax, but changes for businesses in 2023

Dubai’s tax system is highly advantageous, with 0% tax levied on employees’ income and corporate profits. Employees and contractors retain their full salary.

In France, if employees receive benefits such as a company car, school fees for children or accommodation In France, if employees receive benefits from their employer, such as a company car, children’s school fees or accommodation, these are benefits in kind and will increase their income tax and social security contributions. In Dubai, on the other hand, the tax rate is 0%, which means that the employer’s benefit will have no impact on income tax.

From June 2023, the corporate tax rule will change. All companies with profits in excess of AED 375,000, i.e. around €90,000, will be taxed at a corporate tax rate of 9%. Companies with lower profits will remain at 0%. Dubai wishes to introduce this tax so as not to be assimilated to a tax haven or grey zone. gray zone.

Rental income and salaries won’t be much affected by this reform, but it could have an impact on real estate: property developers, construction companies and their subcontractors will be subject to it. This will have an impact on real estate prices, as they will increase their prices to avoid reducing their profit margins. Free zone companies not operating in the emirates will be exempt from corporate income tax.

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