Dubai International Financial Centre (DIFC) is one of the most prolific free zones in Dubai. A specific thing about the Dubai International Financial Centre is that it provides for the establishment of regulated and non-regulated types of companies. This is because, as a financial centre, the DIFC provides for the opening of financial institutions (regulated ones) and businesses in other industries (non-regulated ones). Even so, the taxation of companies in Dubai International Financial Centre is the same as in any other free zone.
Our Dubai company formation consultants can offer information about the types of entities available for registration in Dubai International Financial Centre Free Zone.
Taxes applied to companies in Dubai International Financial Centre
As mentioned above, the taxes levied to individuals and companies in DIFC are established by the authority handling company registration requests. The main law providing for the taxation of companies in Dubai International Financial Centre is Law No. 1 of 2009. However, this act only provides for the taxation of financial institutions, such as banks or credit companies operating in the DIFC. It should be noted that foreign banks operating in Dubai through branch offices are subject to a 20% rate on the income generated here. With respect to companies operating in other fields than the financial one, they will benefit from various tax exemptions.
Tax benefits for companies operating in DIFC
Companies applying for a commercial license in Dubai International Financial Centre, therefore non-regulated entities, will be granted the following tax advantages:
- no income or corporate tax for a period of 50 years;
- no repatriation taxes;
- no import and export duties.
The foreign shareholder should pay attention to the tax rules applicable in the countries they come from and verify the double tax treaty provisions in their home countries with the UAE. Based on UAE’s double tax agreements, one can benefit from dividend and interest tax exemptions or deductions.
For full information on the taxation of companies in Dubai International Financial Centre, please contact us. Our company incorporation agents can also assist if you want to open a company in Dubai.