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Taxation of Companies in Ajman

Taxation of Companies in Ajman

Ajman, one of the seven Emirates of the UAE was established towards the end of the 18th century. Its development began in 1981 when the new ruler introduced new administrative regulations which have created a suitable environment for the economy. Currently, The Emirate of Ajman has one free zone bearing the same name and which was set up in 1988. Foreign investors seeking to start businesses in Ajman can open companies in the emirate or in its free zone.

Our company formation agents in Dubai can assist you in setting up companies in Ajman and in its free zone.

Taxes imposed in Ajman

Ajman, like other emirates such as Dubai and Abu Dhabi, has issued its own tax decrees under which the income tax is imposed on companies registered in the UAE and operating in the gas and oil industry. Branch offices of foreign banks operating in Ajman are also subject to income tax. One of the great aspects of the taxation of companies in Ajman refers to the exemptions on the taxation of capital gains and dividends. Foreign banks are taxed at flat rates of 20% across the UAE, including in Ajman. Companies extracting and producing oil and gas are subject to a 50% tax rate.

Our Dubai representatives can offer more information on tax decrees across the UAE.

Taxation of companies in Ajman Free Zone

If opening a company in Ajman is advantageous from a taxation point of view, establishing a business in the emirate’s free zone attracts even more benefits. Apart from the fact that full foreign ownership is allowed, the Ajman Free Zone Authority has enabled the following tax exemptions for companies:

  • no income tax applied to individuals holding shares in companies in Ajman;
  • no corporate taxes;
  • no taxes on the repatriation of profits.

Foreign shareholders in companies registered in Ajman or its free zone must pay attention to the tax rules applied in their home countries, as incomes derived in the UAE may be taxable. It is also useful to know that the UAE has signed many double tax treaties in the past years which enable foreign shareholders to apply for various tax deductions in their home countries.

For complete information on the taxation of companies in Ajman, please feel free to contact our company registration consultants in Dubai.