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company setup in dubai

5 Best freezone in UAE for Company Formation

Best Free Zones in the UAE Beginning your exploration of the top free zones in the UAE is the ideal initial step for you.The UAE has solidified its position as a prime destination for entrepreneurs seeking to establishbusinesses. Its appealing tax framework, numerous incentives, incubator programs, and more make ita favourable location for investors.Commencing your business venture in a free zone is the perfect starting point. Free zones representthe ideal jurisdictions to kickstart your business and guarantee that your entrepreneurial journey is ona well-directed course. Jebel Ali Free Zone Authority (JAFZA) JAFZA, a part of Dubai Ports (DP) World, is recognized as the flagship free zone within the DP WorldUAE region’s integrated business hub. Established in 1985, JAFZA stands as one of the UAE’s earliestfree zones. Its strategic location in close proximity to the world’s 7th largest container port, Jebel AliSea Port, positions it as the optimal choice for import and export activities. Over the years, JAFZA has set a benchmark for other free zones to emulate, thanks to its distinctivepositioning and progressive operational procedures. The jurisdiction has obtained ISO certification,enabling businesses to diversify their operational models. JAFZA issues a variety of licenses, including those for trading, services, industry, and even ecommerce. Due to its popularity and consistent growth, JAFZA stands out as an ideal free zone formultinational corporations (MNCs). Dubai Multi Commodities Centre (DMCC) DMCC is recognized as one of the most prestigious free zones in the UAE and holds the title of theworld’s number 1 free zone. DMCC has played a significant role in the development of trade andcommerce in Dubai, making it an attractive industry to enter and establish a business in the UAE.DMCC is open to nearly every business activity and offers a wide range of office solutions. A single license issued by DMCC can cover up to 6 business activities within the same group. DMCC’slicense isn’t limited to industrial, service, or general trade; it’s also one of the few free zones thatpermit crypto commodities trading Additionally, DMCC allows entrepreneurs to obtain a dual license, enabling businesses to expand theiroperations to the mainland or onshore. To qualify for a dual license, entrepreneurs must obtain botha DMCC license and a mainland license. International Free Zone Authority (IFZA) The International Free Zone Authority (IFZA) is among the highly sought-after free zones in the UAE.Despite its relatively recent establishment, IFZA garnered rapid attention for its status as one ofDubai’s most economically friendly free zones for company setup. Strategically situated, IFZA offers an exceptionally cost-effective setup process, rendering it one of themost promising free zones for business expansion and opportunities. IFZA also provides a diverserange of licenses catering to the needs of entrepreneurs. These licenses encompass consulting,service, e-commerce, commercial, and trading licenses. A particularly attractive feature of establishing a company in IFZA is that there is no obligatoryrequirement for a physical office space to initiate a business. Fujairah Creative City Free Zone Fujairah Creative City Free Zone (CCFFZ) stands out as one of the fastest-growing media free zones inthe MENA region, offering a wide range of flexible options for business entities. What sets this free zone apart is its convenience. Not only is it highly cost-effective, but it also boastsa streamlined setup process that requires minimal effort and documentation. Creative City in Fujairahaccommodates a diverse spectrum of business activities, with a primary focus on media, events,consulting, education, marketing, and more. A notable feature of this free zone is the option to establish a virtual office, allowing entrepreneursthe freedom to work remotely. Investors and staff can form a company without the obligation ofobtaining a visa, though cost-effective visa solutions are available for those who require them. FujairahCreative City distinguishes itself by allowing entrepreneurs to obtain up to 20 visas under one tradelicense. Sharjah Media City Free Zone (Shams) Launched in 2017, Shams Free Zone in Sharjah has quickly gained recognition as one of the UAE’sfastest-growing free zones. It offers a straightforward and cost-effective setup process, making it anattractive choice for branch companies seeking business expansion. Shams provides the flexibility to choose between LLC company setup and branch setup, withminimal upfront and renewal costs. What makes Shams unique is the option to register without theneed for attested documents. It caters to various business activities, including service, industrial,freelance, trading, and holding licenses Despite its name, Sharjah Media City extends beyond media-related activities, offering opportunitiesacross diverse sectors. Sharjah Publishing City Free Zone (SPCFZ) Sharjah Publishing City is a relatively new yet promising free zone that offers abundant opportunities.It is the world’s first Printing and Publishing free zone and caters to various business needs, providingworld-class infrastructure and a business-friendly environment. While the core activities revolve around publishing and printing, SPCFZ permits additional activitiesrelated to trading, consulting, e-commerce, and IT-related businesses. One of its key advantages is theability for entrepreneurs to conduct up to five activities under one license without incurring extra fees Entrepreneurs establishing a company in SPCFZ have the opportunity to obtain a dual license, and thefree zone offers a range of packages for UAE residents. Three company structures are allowed: FreeZone Establishment (FZE), Free Zone Company (FZC), and branch company. Ras Al Khaimah Economic Zone (RAKEZ) Ras Al Khaimah Economic Zone (RAKEZ) is a popular choice for setup due to its strategiclocation near a seaport and in close proximity to Ras Al Khaimah (RAK) airport. While RAKEZ accommodates a wide variety of business types, it is particularly well-suited formanufacturing activities. It distinguishes itself by offering customizable warehouses and plots ofindustrial land for development, a feature not common in most free zones in the UAE. As one of the largest free zones in the emirates, RAKEZ permits a broad range of activities, spanningfrom commercial and media to e-commerce and educational endeavours. Key Highlights of Free Zone Company Formationin the UAE The Free Zone Company structure in the UAE is consistently the top choice for foreign investors,offering numerous benefits such as: Top 5 most affordable free zones in the UAE: Sharjah Research Technology and Innovation Park (SRTIP) SRTIP is in line with the UAE’s

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company setup in dubai

Company Formation in Dubai Freezone

The UAE Ministry of Finance released a judicial determination for the accounting method that is to be followed and the Generally Accepted Accounting Principles (GAAP) that are to be followed for the purpose of corporate tax UAE as per No. 114 of 2023. Thus, this article explains accounting standards that businesses are required to follow in compliance with the statutory legislation. Corporate Tax Consultants in UAE are committed to assisting Taxable Persons to implement these accounting standards and methods; therefore it is advisable to seek their expert services. What is a Free Zone? Dubai free zones are distinct geographical areas separate from the Dubai mainland. They are notonly distinguished by their jurisdiction but also operate under specific regulations unique to eachzone. Establishing a company in a Dubai free zone is advantageous for conducting business outside of thecountry. While it may offer a cost-effective option, it comes with various constraints regardingwhere, when, and how business activities are conducted and regulated. Difference between FZE and FZCO: When registering a company in Dubai free zones, it’s essential to differentiate between a Free ZoneEstablishment (FZE) and a Free Zone Company (FZCO). A Free Zone Establishment typically has a single shareholder, whereas a Free Zone Companyfunctions similarly to a limited liability company, requiring two or more shareholders. Although bothshare similar operational procedures, the primary distinction lies in the share capital requirements. Advantages of company setup in Dubai Free Zone Opting for company setup in a Dubai free zone offers several advantages: Disadvantages of company setup in Dubai Free Zone However, there are some limitations and disadvantages to consider: Choose precisely while registering a company in Dubai Free zones: Selecting the right free zone for your business is crucial. Dubai’s free zones offer a variety of optionsin terms of jurisdiction, legal structure, and establishment processes. Therefore, it’s important togather all the necessary insetup specific to your business needs before making a decision.It’s worth noting that there are industry-specific free zones in Dubai, allowing you to choose theregion that best suits your commercial requirements. Step by step process of company setup in Dubai Free Zone: Setting up a business in a free zone is a relatively straightforward process, characterized by minimalpaperwork and a short duration. Here are the key steps for free zone company setup in Dubai: 1. Choose a business activity (or activities) The initial step to kickstart your Dubai free zone business involves making a decision regarding thespecific business activities you intend to engage in. This choice will have a direct impact on whereyou can register your company. The type of license you ultimately apply for will also be contingenton the specific activities you wish to undertake. These activities can encompass professionalservices, e-commerce, commercial operations, trading, and more. 2. Select a suitable free zone. After you have settled on the nature of the business you intend to launch, the subsequent stepinvolves identifying the most suitable free zone for your venture. The United Arab Emirates offersnumerous exceptional free zones, making it necessary to carefully review the options and select thelocation where you envision your business thriving. 3. Choose a unique company name Selecting a business name is a challenging task, regardless of the global location you choose for yourenterprise. This process involves not only choosing the company’s name but also defining the natureof its operations. 4. Submit your license application To obtain your trading license in the UAE, you must complete the application form and furnish avariety of required documents and paperwork. Once the relevant authorities have granted approvalfor your company’s activities, you can obtain essential legal documents such as the Memorandum ofAssociation, Certificate of Incorporation, Trade license, Share certificates, Visas, Tenancy agreement,Labour cards, and more. 5. Apply for visas as needed Apply for visas as neededAt this juncture, you can initiate the visa application process. This involves applying for your UAEresidence visa, as well as those for your employees 6. Open a corporate bank account Once you’ve successfully processed all the essential documentation for registering your company inDubai from India, the next step is to establish a business bank account for your company. It’s vital toselect a bank that aligns with your company’s requirements and offers perks and substantialadvantages that contribute to cost optimization for your business. Types of Trade Licenses in UAE In the UAE, there are different types of licenses for businesses: Mainland license in Dubai A mainland license in Dubai, or in any other location worldwide, serves as an essential documentthat legitimizes your company as a recognized legal entity. In Dubai, a mainland trade license isgranted to businesses to monitor their operations and ensure that business activities are conductedin a secure and accountable manner. The process of registering a company in Dubai encompassesmultiple stages, with obtaining a trade license standing out as the most pivotal step Step by step process of company setup in Dubai Mainland Step 1 – Choose Your Business ActivityFirst, select the business activity you intend to pursue in Dubai or any other Emirate. It’s importantto assess the feasibility of the chosen business activity within the region.Step 2 – Opt for a Local UAE Sponsor or PartnerOne of the most critical aspects of obtaining a business license in Dubai is finding a suitable local UAEsponsor or partner. This choice is pivotal, as selecting the right sponsor is essential for smoothbusiness operations and regulatory compliance.Step 3 – Determine Your Legal Form or StructureEvery setup in Dubai or anywhere in the UAE must adhere to a specific legal form orstructure prescribed by the Dubai Economic Department.Step 4 – Reserve Your Trade NameChoose a distinctive name for your company, which will serve as its unique identity. You must alsoreserve the trade name following the procedures set by the Dubai Economic Department.Step 5 – Apply for Initial ApprovalOnce you have your initial paperwork in order, apply for Initial Approval from the Dubai EconomicDepartment. This approval allows you to initiate your business in Dubai and concurrently apply forother required certifications as stipulated by the DET.Step 6 – Obtain External ApprovalsCertain businesses may necessitate

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Corporate Tax Accounting Standards and Methods as Per the Corporate Tax Law

The UAE Ministry of Finance released a judicial determination for the accounting method that is to be followed and the Generally Accepted Accounting Principles (GAAP) that are to be followed for the purpose of corporate tax UAE as per No. 114 of 2023. Thus, this article explains accounting standards that businesses are required to follow in compliance with the statutory legislation. Corporate Tax Consultants in UAE are committed to assisting Taxable Persons to implement these accounting standards and methods; therefore it is advisable to seek their expert services. Financial Statements and the cash basis of accounting methods. Why is it vital for businesses to follow accounting practices and laws and why has it been implemented by the MoF? The businesses must keep accounting practices and records as per the CT law. Some of the advantages are as explained below: – In conclusion, following legal accounting procedures and standards is essential for businesses to ensure transparency, encourage fair competition, adhere to rules, and make informed judgments. It improves responsibility, credibility, and trust, which is advantageous to the organization and its stakeholders.  How AB CAPITAL in UAE can assist  It is important to note that specific circumstances and industry-specific regulations may impact the application of these accounting standards and methods. It is advisable for Taxable Persons to consult AB CAPITAL SERVICES UAE today to effectively understand how and what corporate tax Accounting Standards and Methods are to be followed as per the corporate tax laws in the UAE. We are well versed in and fully updated with the rules and decisions issued by the FTA. Therefore, contact us today and we shall be glad to assist you.

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Claiming Your VAT Refunds Made Simple: A Step-by-Step EmaraTax Walkthrough

As a small business operating in the UAE, we are sure you have come across many situations that affect you on a daily basis. One of the most common complexities that many businesses face is when the VAT charged on goods purchased (input tax) is more than the VAT on the amount generated through sales of products or services (output tax). This definitely looks like a one-off situation, but if you actually look more closely at the numbers, it affects nearly 90% of businesses in the UAE. Most small businesses have no clue how to recover the tax difference amount that arises in such situations, which is why we have put together a guide on how this works practically when you log in to the EmaraTax platform How to Use EmaraTax to Claim Direct VAT Refunds So, let us deep dive into the steps for reclaiming VAT from the EmaraTax platform: Always remember, you can access the refund request from the VAT 311 tile within the VAT tax module. With the introduction of the Emaratax platform, the authorities have made it convenient for businesses to file returns and apply for refunds, if any. Small businesses in UAE may still not be aware of the procedures they have to follow, but these issues can be solved by approaching expert tax consultants  like AB CAPITAL, who can meet your tax needs at any time. Choose the Best Tax Firm in the UAE! Now that you are well-equipped with the knowledge to claim your direct VAT refunds from EmaraTax, feel free to proceed confidently and start the process. However, if you do encounter any challenges or need expert guidance throughout the refund process, AB CAPITAL SERVICES  is always here to help. Our team of professionals can provide you with comprehensive support and ensure a smooth and successful VAT refund experience and further tax assistance. Do not hesitate to reach out to us for assistance at any stage of the process or for tax consultation.

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Guidelines you should know about new businesses in UAE

The United Arab Emirates has been a longstanding business hub for budding entrepreneurs and established businessmen all across the globe, and the recent guidelines further enhanced its appeal. Moreover, these new regulations have also introduced additional requirements for businessmen and companies who set their businesses in UAE. The UAE has actively encouraged innovation and entrepreneurship. Initiatives such as the Dubai Future Accelerators and Dubai Startup Hub support startups, attract talent and facilitate collaboration between entrepreneurs, investors and government entities.  Businesses can be set up through mainland companies, free zones and offshore entities each with particular advantages. Comprehending the legal structure, understanding the market, adhering to regulations Freezones have played a vital role in driving business growth in UAE offering significant advantages to the industry which includes offering 100% foreign ownership, tax exemptions, and streamlines processes, making them an attractive choice for entrepreneurs and investors. These zones offer state-of-the-art infrastructure, access to global markets and proximity to major transportation hubs, facilitating seamless operations and international trade. The introduction of e-platforms and digital services has simplified administrative tasks, making it easier for businesses to operate. Now, you need to be aware of the business laws passed which places an important role in smooth and fair conduct of a business. You are obliged to several laws that you need to be responsible for which are: This is just an overview of the regulations one need to adhere to, to start a business enterprise in UAE. Contact us at AB Capital to set up your business or get advices on everything business related now!

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Business setup companies in Dubai

Non-residents liable to pay taxes on income from real estate: New Tax Regime

Owning a home, an apartment, or a piece of commercial property is not subject to a yearly tax in UAE. Additionally, VAT (Value-Added Tax) is not levied on commercial property transfers. Owning property in the UAE, however, will result in additional costs in the form of fees and charges. It\’s important to note that some of them must be paid by both homeowners and renters.  A failure to comply with governmental requirements (even if it\’s an honest mistake) can result in significant fines, so it\’s important to stay up to date on UAE tax legislation. Cost of purchasing land and property in the UAE The following costs need to be taken into account when purchasing real estate in the UAE: In Dubai and Abu Dhabi, the Land Department (LD) one-time fee is equal to 4% of the property\’s worth. For land, administrative costs are AED 430 ($117), while for homes and apartments, they are AED 580 ($158). For properties valued at less than 500,000 AED, setup fees are AED 2000 ($544) + 5% VAT, while for properties valued at more than 500,000 AED, setup fees are AED 4000 ($1088) + 5% VAT. If you obtain a mortgage, these amounts will vary. In Dubai, mortgage setup costs are 0.25 percent of the total bank loan amount; in Abu Dhabi, they are 0.1 percent. When everything is done, you can ask your local LD for a Certificate of Owned Property. In Dubai, this will cost you AED 260 ($70), while in Abu Dhabi, it will cost you AED 1000 ($272). It takes this process about 3 business days. You should be ready to pay extra costs when purchasing real estate in the UAE and executing a Sale and Purchase Agreement, such as: Fees charged by the real estate agent equal to 2% of the final sales price of the property plus 5% VAT. The cost to issue a NOC (No Objection Certificate) is AED 1000 ($272). The certificate attests that the owner of the building has no objections to you purchasing the property. When purchasing real estate that is already in use, this sum is applicable. If the property you\’re purchasing is still being built, the project\’s real estate developer will charge you AED 5000 ($1361) for the NOC. UAE property maintenance fees There are mandatory property maintenance and upkeep fees that cover things like garbage collection, janitor work, lawn maintenance, ongoing and future renovations, as well as taking care of public areas like playgrounds, gyms, and swimming pools, despite the fact that there are no federal or municipal taxes on real estate in the UAE. Owners of homes incorporated into residential communities, as well as those who own apartments and other residential spaces, must pay an annual service fee that ranges from AED 3 to 30 ($0.82 to $8.2) per square foot of real estate. All property measures and associated costs in the UAE are computed in square feet (1 square foot equals 0.093 square meters), thus all UAE residents should get used to this. According to a clarification from the UAE Ministry of Finance, income from real estate and other immoveable property would be subject to a nine percent (9%) corporate tax for foreign businesses and other non-resident juridical persons. These annual service fees are calculated precisely by UAE real estate developers (i.e., building owners) using factors such property size, number of floors, equipment on-site, project infrastructure, and so on. Rental taxes in the UAE In the UAE, municipal governments impose taxes on rental properties that are the responsibility of the tenants. The rates of these taxes, which are based on annual rental costs, vary from one emirate to the next. All tenants in Dubai pay 5% of the annual rent, expats in Abu Dhabi pay 3%, and renters in Sharjah pay as little as 2%. In all emirates, tenants of commercial property pay taxes equal to 10% of their yearly rent. The monthly instalments for these UAE rental property taxes are added to utilities bills. Properties in the UAE, both residential and commercial Every residential property is connected to land ownership under UAE law. A tent, caravan, or trailer are not regarded as residential properties. Before any development on a property can begin, \”intended use\” is another consideration. Exclusion determines what qualifies as commercial property, therefore everything that doesn\’t fit into one of the following categories: The same UAE real estate taxes and fees that are levied on residential structures also apply to mixed-use environments (buildings that include residential spaces together with commercial, retail, or entertainment sectors). VAT on UAE Real Estate When it comes to paying VAT on real estate in the United Arab Emirates, everything initially seems straightforward. Residential property transactions are exempt from VAT, but commercial property transfers are subject to a 5% levy. For residential real estate, there are two different VAT statutes in the UAE: \”exempt from VAT\” and \”zero-rated.\” Formation as a UAE VAT payer is required in the following circumstances: You presently fall under ZERO RATED TAX regime If you belong to one of these categories. This implies that until the government changes your rate (which they may do if they so choose to), you are not required to pay UAE VAT on residential real estate. VAT on residential property is EXEMPTED for everyone else in the UAE. VAT refunds on real estate in the UAE The UAE government promotes real estate development; people and businesses can buy a plot of land, build residential property on it, and then ask for a VAT refund on the costs of construction materials and other related costs. A Building Completion Certificate must be obtained from the local development authority and submitted to the FTA no later than six months after it has been issued in order to accomplish that. In addition, the VAT rate is 0% for the first three years following the completion of an apartment or house\’s construction on initial sales and rentals. Developers in the UAE are able to do this

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Business setup companies in Dubai

A complete guide to the new UAE corporate tax for individuals and businesses

The captivating sector of corporate tax in UAE where businesses bloom amidst a dynamic and diverse economic structure is a debatable topic to discuss on. In this Blog, you will get to learn more facts about the new corporate tax in UAE that was announced by the Ministry of Finance (MoF). Here are a few commonly asked Questions one needs to know before starting a new business in UAE: Was there any tax prior to the announcement of the new corporate tax? The UAE first introduced VAT in 2018 at 5% but then in January 2022, they announced a corporate tax that would come in effect this year. What is the rate of corporate tax in UAE? The corporate tax rate is at 9% of the net profit made by the business. However, if the annual profits of the business are up to AED 375,000 then up to that limit no corporate tax would be payable. Are all businesses in UAE subjected to corporate tax? No, not all business in UAE are subjected to corporate tax. The applicability of corporate tax depends on various factors including legal structure, business activities and annual turnover of the company. Why did they introduce the corporate tax in UAE? The corporate tax in UAE was introduced in order to amplify UAE’s position in the global market helping it become a hub for investments and start-ups with affordable setup fees and no corporate tax for new businesses. Is there any tax for small business and start-ups in UAE? No, there aren’t any tax rates for small businesses as of now. In fact, they have introduced Small Business Tax Relief in UAE for businesses with annual revenue of below AED 3 Million. Why did they announce Small Business tax relief for start-ups? The government announced this small business tax relief in order to provide support to small businesses and start-ups so that more people can operate in it. How to register for the Small Business tax relief? Businesses subject to corporate tax are required to register and obtain a tax setup number. The setup application must be submitted to the Federal Tax Authority. Will there be a personal tax in UAE now? No, there is no personal tax on people’s income in UAE. All the salaries, dividends and other income that a person earns in his personal status will not be subject to corporate tax. Navigating corporate tax applicability can be hard and requires a comprehensive understanding of the local tax laws in UAE. It is always advisable to seek professional guidance from a business or tax consultants who specialises in this sector. To seek guidance and help, AB Capital Services is here to deliver all your unique requirements accurately.

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Corporate Tax Relief in UAE

UAE’s new Corporate Tax Relief for Small Business!

Everything you need to know about UAE’s new Corporate Tax Relief for Small Business! Small industries are the backbone of a thriving economy and UAE is mindful of it and its importance. By implementing relief measures for various small businesses, the UAE government aims to attract entrepreneurs, foreign investment and have a growing economy. Understanding these reliefs and measures given to the small business owners, it helps to navigate them the confidence and stage for their industry and its success. What is the relief that these businesses will get? In April 2023, the ‘Small Business Relief’ was announced by the Ministry of Finance by introducing tax relief for those who fit under a certain norm. Small business owners in UAE with revenue under AED3 million can apply for tax relief which came in effect from June 1, 2023 and will extend upto end of 2026. Once the revenue exceeds the minimum revenue, the business will no longer cater to the Small business tax relief policy and need to give 9% tax then onwards. Why was this decision made? How will it benefit the small business? This decision was strategically made to diversify UAE’s income sources which were only limited to oils, allowing the country to maintain its status and economy. The new tax regime reaffirms UAE’s commitment to meeting international standards for tax transparency and prevent harmful tax practices. What are the conditions in which one can claim this relief? The small business relief only applied to a ‘resident person’. The Ministry of Finance also clarified that if FTA (Federal Tax Authority) establishes that taxable persons have artificially separated their business or business activities and have a revenue higher than the one stated, this would come under anti abuse rules of the Corporate Tax Law and may be set aside. Conclusion The UAE maintains a competitive environment for local and foreign investors with tax exemptions and reduced rates. It remains a viable business destination, even with the new tax, offering a favourable climate, especially for small businesses which can leverage the business-friendly ecosystem while adhering to the new rules. We at AB CAPITAL can help you with all your queries about everything you might want to know about business and taxes. Our consultants aim to assist you in all aspects you want to know more about. You can directly get in touch with us through our quick form you can fill or even visit our office regarding any help or advice.

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Decoding Freelancing and Corporate Tax in the UAE: What You Need to Know in 2025!

Will a Freelance Professional be Subject to UAE Corporate Tax? As per the regulations of corporate tax in the UAE, any taxable income exceeding AED 375,000 will be subject to Corporate Tax. This tax system will also be applicable to freelancers and independent contractors in the UAE who work for themselves if their income goes beyond the AED 375,000 limit. Before heading deeper into how UAE corporate tax applies to freelancers, let’s take a look at the diverse aspects of corporate tax and implications. UAE Corporate tax Being the pro-business hub, the nation provides businesses with unparalleled access to cutting-edge infrastructure, technological advancements, 100% foreign ownership, and a tax-free culture. These advantages draw hundreds of professionals to the UAE each year in search of intriguing career prospects. This is why the Ministry of Finance of the UAE published Federal Decree-Law No. 47 of 2022, which establishes the legal foundation for corporate tax on commercial profits in the UAE. The UAE has taken this step to follow international norms and comply with Pillar 2 of the OECD’s Global Minimum Tax Plan. According to the law, starting with their first fiscal year beginning on or after June 1, 2023, taxable individuals and businesses must pay a 9% corporation tax. It is critical to assess how the UAE corporate tax will apply to both individuals and businesses in the future given that it is the first time the country has chosen to impose it. Do Freelancers Have to Pay Corporate Tax? The Corporate Tax regime will also apply to freelancers in UAE and other independent contractors who work for themselves if their income exceeds the AED 375,000 threshold. The law dictates that these independent contractors must have a license or permit. Many eventualities that apply the corporate tax for freelancers are as follows: • Those who have the new freelance permit, which is provided under the new labour law for self-sponsored expatriates, are not required to pay corporate tax on their profits. • If freelancers with business licenses are sponsored in a free zone and engage in any activity for other businesses, the sponsor will be charged corporate tax. • Freelancers who work for a business will not be subject to income tax on the money they make from salaries; rather, the business that issues the visa will be subject to income tax on its net profit. Corporate Tax for Freelancers: Exemptions The following situations are where the corporate income tax law in the UAE exempts individual or freelancer profits made in their capacity: • Interests, profits, and other earnings made by a person residing in the UAE from bank deposits or savings plans. • Income derived from real estate investments by individuals in their capacity. • Dividends, capital gains, and other income received by individuals from their ownership of shares or other securities How can AB CAPITAL assist the Freelancers in UAE? Business owners have always regarded the UAE as a tax-free oasis. By introducing the new corporate tax regime, the UAE intends to follow worldwide best practices in developing a leading global hub for businesses while advancing the nation’s strategic objectives for further growth. Whether it’s for the deployment of countermeasures, training personnel, or formulating a compliance policy, our professionals can handle your company’s accounting and auditing demands and assist you in becoming UAE corporate tax ready. If you are a freelancer having any confusion regarding the corporate tax on your income, get in touch with AB CAPITAL’s professionals for your guidance. Also Read: The UAE Awaits: Are You Ready to Invest in the UAE in 2025? How Can a Foreign Company Open a Branch in Dubai, UAE in 2025? Step-by-Step Process of Company Registration in Dubai Free Zone in 2025 How To Open A Company In Meydan Free Zone In 2025? Important Tasks for Your First Financial Year Under the UAE Corporate Tax Law

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Tax applicability on crypto exchanges :What You Should Know:

Crypto exchanges have revolutionized the way we trade digital assets. But what about the tax implications? In this blog post, we\’ll explore the key points to understand about taxes on crypto exchanges. 1. Crypto Tax Basics: Cryptocurrency taxation is an important aspect to consider when engaging in crypto transactions. Understanding the difference between investing and trading is crucial. Additionally, accurate record-keeping is essential for tax purposes. 2. Taxable Events on Exchanges: Various activities on crypto exchanges can trigger taxable events. When buying and selling cryptocurrencies, capital gains tax may apply. Trading activities can lead to short-term or long-term capital gains. Converting one cryptocurrency to another also has tax implications. Furthermore, mining and staking cryptocurrencies can have tax considerations. 3. Reporting Requirements: It\’s important to understand your tax reporting obligations as a user of crypto exchanges. Forms such as 1099-K and 1099-B may be applicable. Keeping track of cost basis and accurately calculating gains or losses is crucial. Familiarize yourself with the common tax forms and schedules related to cryptocurrency transactions. 4. Tax Strategies: Implementing tax-efficient trading techniques can help minimize your tax liabilities. Tax-loss harvesting is a strategy that involves offsetting gains with losses. Additionally, understanding like-kind exchanges (if applicable) can provide opportunities to defer tax obligations. It\’s highly recommended to seek advice from a tax professional who specializes in cryptocurrency taxation. 5. Regulatory Compliance: Staying compliant with tax regulations is essential. Stay updated with the IRS guidelines and enforcement efforts related to cryptocurrencies. If you have foreign crypto accounts, make sure to understand the reporting requirements. It\’s crucial to stay informed about evolving tax laws and regulations. Conclusion: Understanding the tax implications of crypto exchanges is vital for compliance and making informed financial decisions. By familiarizing yourself with the basics of crypto taxation, recognizing taxable events, meeting reporting requirements, implementing tax strategies, and staying compliant with regulations, you can navigate the world of crypto taxes with confidence. Remember, seeking advice from a qualified tax professional is crucial for personalized guidance tailored to your specific tax situation. Disclaimer: This blog post provides general insetup and should not be considered legal or financial advice. Consult a tax professional for personalized guidance. For more such tax related Insetup contact us.

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UAE Tax Residence Certificate

A UAE Tax Residence Certificate is an official document issued by the Federal Tax Authority (FTA) in the UAE. It serves as proof of tax residence in the country and is valid for one year, requiring renewal upon expiration. The objective of the UAE Tax Residence Certificate is to enable individuals and companies operating in the UAE to benefit from Avoidance of Double Taxation Agreements (DTAs). By providing the certificate, individuals and companies can establish their tax residency in the UAE and potentially avoid being taxed in multiple countries. It also facilitates smoother cross-border trade and investments. Both individuals and legal entities are eligible to apply for and obtain a UAE Tax Residence Certificate, as long as they meet the applicable requirements. For individuals, the required documents include -: For legal entities, the necessary documents include-: It’s important to note that UAE offshore companies are not eligible to apply for a Tax Residence Certificate as they are considered non-resident entities for taxation purposes. The procedure for obtaining a UAE Tax Residence Certificate involves  Alternatively, individuals and companies can seek assistance from a service provider to handle the application process on their behalf, which can save time and effort.

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Tax Applicability on forex transactions

Introduction: Forex transactions, involving the buying and selling of different currencies, have become increasingly popular in today’s globalized world. As with any financial activity, understanding the tax implications associated with forex trading is crucial for individuals and businesses alike. In this blog, we will explore the tax applicability on forex transactions, shedding light on important considerations, rules, and regulations. Forex Trading and Taxation: Forex trading involves the conversion of one currency into another for various purposes, such as international business transactions, investment, or speculative trading. It is important to note that tax regulations regarding forex transactions may differ across countries, so it\’s essential to consult with local tax authorities or a tax professional for specific guidelines. Capital Gains Tax: In many jurisdictions, profits generated from forex trading are subject to capital gains tax. This tax is levied on the difference between the purchase price and the selling price of the currency. The tax rate can vary based on factors such as the duration of holding the currency and the individual\’s tax bracket. Traders should keep detailed records of their trades to accurately calculate and report capital gains. Tax Treatment for Individuals vs. Businesses: Tax treatment may vary for individuals and businesses engaged in forex trading. Individual traders may be taxed differently, depending on whether forex trading is considered their primary source of income or a secondary activity. On the other hand, businesses involved in forex trading may be subject to additional tax obligations, such as corporate income tax. Foreign Exchange Rate Fluctuations: Forex transactions are inherently influenced by exchange rate fluctuations. It is important to consider the impact of these fluctuations on tax obligations. Some jurisdictions may require individuals or businesses to report gains or losses resulting from currency exchange rate changes. Understanding the specific rules in your jurisdiction can help you stay compliant with tax regulations. Reporting Requirements and Documentation: To ensure compliance with tax laws, individuals and businesses engaged in forex trading may be required to maintain detailed records of their transactions, including dates, amounts, exchange rates, and any associated expenses. These records are crucial for accurate reporting and can serve as supporting documentation during tax audits. Tax Treaties and Double Taxation: For individuals or businesses engaged in forex trading across international borders, tax treaties between countries can play a significant role. These treaties aim to prevent double taxation, where the same income is taxed by both the source and resident country. Understanding the provisions of tax treaties can help optimize tax liabilities for cross-border forex transactions. Conclusion: Tax applicability on forex transactions can be complex and varies across jurisdictions. It is vital to stay informed about the specific rules and regulations in your country to ensure compliance and avoid unnecessary penalties. Seeking guidance from tax professionals or consulting with local tax authorities can provide the necessary clarity and help navigate the intricate landscape of tax obligations associated with forex trading. Disclaimer: The insetup provided in this blog is for educational purposes only and should not be considered as professional tax advice. Always consult with a qualified tax advisor or tax authority for specific guidance related to your individual or business circumstances.

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