TME Legal
Corporate tax law in Dubai
The tax strategy is crucial for corporate success. Get individual advice tailored to your goals.
With the introduction of corporate income tax (CIT) and value-added tax (VAT), the United Arab Emirates (UAE) has established a modern tax system. However, these reforms have a direct impact on business decisions, investment models and holding structures. In particular, companies, family offices, investors and private individuals with activities in Dubai are affected.
TME Legal offers comprehensive, practice-oriented advice on corporate tax law. Our experienced tax advisors and lawyers develop individual tax strategies that provide legal certainty and optimally protect your economic interests in the UAE.
Our Consulting Services in Corporate Tax Law in the UAE
An effective tax concept goes far beyond the mere fulfillment of legal obligations. It is a strategic instrument for safeguarding competitiveness, reducing tax risks and increasing economic efficiency.
Capital investments and investment structuring
Anyone investing in Dubai or internationally should consider tax risks early on and make optimal use of opportunities. Our law firm supports you in structuring your investments in a legally secure and tax-efficient manner – for sustainable returns and long-term stability. We advise you on, among other things:
- Real estate projects in the UAE and abroad
- Company participations and private equity investments
- Structuring of further capital investments under tax optimization
Corporate tax advice
The introduction of corporate tax in Dubai and the UAE presents companies with significant legal and organizational challenges. We offer comprehensive tax advice to correctly fulfill all obligations and sustainably optimize your tax burden. This includes in particular:
- CIT registration and communication with the tax authorities
- Preparation and timely submission of tax returns
- Development of legal strategies for tax optimization
- Review of CIT risks, avoidance of fines
- Ongoing advice on changes in corporate tax law
Tax-optimized corporate structuring
A well-thought-out corporate structure is crucial for tax efficiency and operational flexibility. We develop structures that are legally sound and at the same time secure economic advantages. Our range of services focuses on:
- Conception of holdings, subsidiaries and permanent establishments
- Design of optimized corporate tax structures taking into account current CIT and VAT regulations
- Analysis and implementation of international tax strategies
- Ongoing monitoring to ensure compliance with local tax rules and ensure compliance
Tax Compliance Management
Tax obligations must not only be fulfilled, but also systematically monitored in order to avoid risks. We ensure that your compliance processes are legally compliant and efficient. Our legal advice covers the following areas:
- Timely submission of all tax returns
- Complete documentation of all tax-relevant transactions
- Optimization of internal processes to minimize risks
- Monitoring of legal changes and timely adaptation of processes
Tax law transaction advice
Company sales, mergers or restructurings are among the most complex decisions a company can make. Especially in an international environment such as Dubai, careful tax law transaction advice is crucial in order to avoid financial risks and create legal certainty. We therefore accompany you in a legally secure manner from analysis to implementation in order to secure your economic advantages and minimize risks. Our consulting services include:
- Due diligence in the context of company acquisitions and sales
- Structuring and tax-optimized design of M&A transactions
- Tax support for restructurings and asset deals
- Advice on cross-border tax issues and avoidance of double taxation
VAT consulting in Dubai
Value added tax is a central component of almost all business activities in the UAE, and incorrect implementation can quickly lead to costly consequences. With our specialized VAT consulting in Dubai, we ensure that your company complies with all legal requirements and at the same time makes optimal use of tax leeway. We ensure complete and efficient VAT compliance through:
- Support with VAT registration
- Preparation and submission of VAT returns
- Optimization of input tax deduction and accounting processes
- Advice on complex transactions and international supply chains
- Adaptation of contracts and pricing to VAT requirements
Legal and Tax Consultants
Our Expert Team
Clear answers
Frequently asked questions about
corporate tax law in Dubai
What taxes are incurred for companies in Dubai?
For companies in Dubai and the UAE, a regular corporate tax rate of 9% applies to the net annual profit, with an allowance of AED 375,000 (approx. EUR 95,000) provided. Natural persons are subject to the VAT threshold of AED 1 million per calendar year.
Is Dubai considered a tax-free business location?
Dubai does not levy income tax, inheritance tax or withholding tax. The only noteworthy tax is value added tax. In addition, corporate tax of 9% was introduced for companies in June 2023.
Is there a double taxation agreement between Germany and Dubai?
The previous double taxation agreement between Germany and the UAE (DTA UAE) expired on December 31, 2021. So far, no new agreement has been concluded or the validity extended.
Does Dubai levy a trade tax?
No, Dubai does not levy a trade tax. Only the corporate tax of 9% is relevant for companies. Dividends and profit distributions remain tax-free.
According to which principles is a Dubai LLC taxed in Germany?
Income generated in Dubai is taxed as global income in Germany. Even if no income tax is incurred in Dubai, taxpayers are required to declare the income in the German tax return and are assessed according to the German income tax rate.
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