Income tax, value added tax, property tax, something tax and something almost same thing tax, and then something else tax… People around the globe pay about 30 percent of their earning/savings on tax. Except for the very fortunate ones in UAE. Neither the locals nor the residents or tourists in Dubai have to pay taxes. Yes, they are exempted from paying all the taxes till date. There is absolutely no tax at all. Not just personal there are no corporate taxes either.
That is why the free trade zone industry is at a bloom in UAE. And Dubai would be the only metropolitan without any tax. Thanks to the Federal government they do not want to impose any tax on the wealth of individuals or corporates as such. Rumors and headlines of UAE imposing taxes has been spreading around ever since 2008. Some of them don’t even agree to the idea of UAE being tax free as they believe UAE collects tax in indirect ways like in the form of toll gates and several other registration fees etc. Some even tag Dubai for being one of the most expensive countries to be living in, but when compared to other metropolitans it is way more reasonable.
Fear of Income Tax
UAE has been thinking on and about imposing several taxes within the country and some of them already fear heavy income taxes. However Reputed Business Advisor knows, the Federal government has made is clear on several occasion that UAE has no such motives but they might impose some other mild form of tax. The idea of taxation of several forms was many a times picked up and dropped. Also, to the relief the Royal ruling family of Dubai had stated that as a means of relieving the debt they will never resort to taxation.
But even before the news and rumors were put down there was another headline sneaking out about the value added tax. It was doubted that a Vat of 2 – 7% could be imposed. VAT now seems a sure thing, as they have officially declared its on effect date which is Jan1 2018. So, for those of you who seriously wish to avoid this, do the luxuries and shopping right away without waiting for an year to pass by. A five percent vat will be applicable. Most of the people in Dubai are somehow relieved that it din’t make it to the dreaded 7%.