The UAE is the third least complex jurisdiction in the world for accounting and tax compliance. Unlike complex tax laws in other parts of the world, no personal tax, no limits on repatriation of capital or profits are prevalent in the UAE.However, there are other important areas to consider. With majority of the population as expatriates, possible tax implications in their home country; or for companies using UAE as a base or planned tax reforms must be considered.
There are currently 450,000 private owned companies in the UAE, and the number is expected to soon reach 600,000 in the next couple of years. From January 1st, 2018, all the GCC countries, including the UAE, Saudi Arabia, Qatar, Bahrain and Oman, are set to implement a VAT of 5% per cent and 100% service tax on select items. This changes the dynamics. Also, foreign oil and gas producing companies, banks, pay corporate taxes in the UAE, from 10%-55% of their annual income – this excludes banks regulated by the Central Bank and oil companies’ income. However, such taxation rules don’t apply to free zones.
In such a changing, layered environment with cross-border implications, Al Gharib help clients with range of tax services. We combine local insight and global knowledge from multi-disciplines and help clients comply and maximize their revenues.
For new companies with multi-country operations; or foreign companies looking at setting up base in the UAE, we guide them on relevant tax considerations and, increasingly where deals are cross-border, we advise across multiple jurisdictions.
Our Tax related legal services include:
- Tax expertise from initial structuring to full implementation end phases
- Address procedures for tax collectors, auditing, avoidance, violations and penalties.
- Customs duties on imports, service charges in the hospitality sector
- Taxes on income from property
- Tax reforms regarding VAT and corporate taxes
- International tax, transfer pricing
- Mergers and acquisitions