The United Arab Emirates is a very attractive country with regard to taxation if you do not have a petroleum or other fossil fuel business. It is a good place for a business that provides investors with security of invested funds. Check out – taxes in the United Arab Emirates.
Taxes in the United Arab Emirates
Throughout the UAE, there is practically no corporate income tax for businesses. Only the income derived from fossil fuel and banking operations is taxed. The income tax rate for fossil fuel operations is 55% and for banking operations (foreign bank branches only) is 20%.
The standard VAT rate is 23%.
However, from 1 June 2023, the UAE will start to apply corporate income tax with a starting rate of 9%. The rate of the new income tax will be 0% for the taxable portion of income below AED 375,000. In contrast, for incomes above AED 375,000, it will be 9%.
United Arab Emirates – pay attention to:
The United Arab Emirates is a country of very low taxes or almost tax-free, however, it should be borne in mind that it is an association of countries and thus institutional as well as fiscal conditions may vary depending on a particular emirate.
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HOW TO CHOOSE THE RIGHT COUNTRY TO MOVE TO?
Moving abroad is a highly significant step in life. Tax issues should come as the last matter to be considered. Think about where you would like to live, where your children should go to school and where you want to run a business. Only after honestly answering these questions, can you decide which country will be the most suitable for all your needs.
WHAT FORMALITIES DO I HAVE TO COMPLETE WHEN MOVING OUT OF POLAND?
There are many formalities, and they depend primarily on the current situation. The aim should be to completely sever all ties with Poland.
DO I HAVE TO FILE A TAX RETURN IN POLAND AFTER MOVING AWAY?
Tax returns in Poland are submitted by Polish residents or persons earning income in Poland who are residents of another country. It all depends on whether you have successfully relinquished your Polish residence. And if you have, it also depends on the kind of income you earn in Poland.
WILL I PAY TAX IN POLAND BECAUSE OF RELOCATING THE COMPANY ABROAD?
The question is about the broad subject of exit tax. First of all, you need to verify what moving the company abroad actually means. It can be both the relocation of the registered office of the company and the personal move of the entrepreneur – a natural person. The tax implications of both situations may be significantly different.
CAN I TRANSFER THE COMPANY'S ASSETS TO THE DESTINATION COUNTRY TAX-FREE?
The general limit below which you do not have to pay exit tax in Poland is PLN 4 million. Nevertheless, it is always necessary to check this issue because the transfer of the company’s assets to the destination country will not always mean the same thing.