Dubai Internet City is one of the most prolific free zones in the emirate which has won numerous awards over the years. Among these, it is worth mentioning the Best Hi-Tech Free Zone in the World in 2009, the Top Global Free Zone of the Future in 2011 and several others. In 2010, Dubai Internet City also ranked 4th in the Best Incentives Category at the global level. These incentives are just a few of the reasons, the Dubai free zone attracts a great number of foreign investors year after year. The other strong reason is the taxation system imposed by the Dubai Technology and Media Free Zone Authority (DTMFZA), which is responsible for the management of Internet City.
Our company registration agents in Dubai can assist foreign enterprisers interested in opening companies in Dubai Internet City Free Zone.
Are companies taxed in Dubai Internet City?
The taxation of companies in Dubai Internet City is based on residency, meaning a company must have a registered address and the management in the free zone in order to pay its taxes here. Even if the Dubai and the federal governments have issued tax decrees which provide for the imposition of the income tax, this applies only to companies in the oil and gas and in the banking sectors, and only to companies operating in Dubai. Therefore, there is no tax imposed on companies operating in the Dubai Internet City Free Zone.
Our company incorporation agents in Dubai can offer more information on the taxation of companies here.
Tax incentives for companies in Dubai Internet City Free Zone
In order to enforce the idea of a tax-free environment, the DTMFZA has enabled several tax incentives in order to stimulate foreign investments in Dubai Internet City. Among these are:
- no corporate tax for 50 years;
- no income tax for 50 years;
- tax-free repatriation of profits;
- no customs duties on goods or services.
Apart from these, if any taxes are imposed on foreign companies acting as shareholders in Dubai companies, they can benefit from the double taxation agreements the UAE has signed with their home countries which provide for further tax advantages.
If you want to open a company in Dubai Internet City Free Zone, please feel free to contact us. Our company formation consultants can also help you open a company in Dubai.