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Taxation of Companies in Dubai Silicon Oasis

Taxation of Companies in Dubai Silicon Oasis

With the increased visibility of the innovation and research and development industries at global level, the Dubai Government also wanted to offer a suitable environment for the evolution of these sectors. This is how Dubai Silicon Oasis Free Zone came to be. Dubai Silicon Oasis was established as a center dedicated to innovation and high-tech companies and to foreign investors who sought for locations to set up operations addressing the Middle Eastern markets.

Opening a company in Dubai Silicon Oasis comes with many advantages, especially from a taxation point of view. Our company formation agents in Dubai can help you set up companies in Oasis Silicon Free Zone and its Administrative Zone.

Taxes imposed to companies in Dubai Silicon Oasis

Because of the free-tax environment, Dubai and its free zones, including Silicon Oasis, are considered very suitable for opening companies. The tax legislation in Dubai only specifies that a company is considered a tax resident if its management is established in Dubai. However, Dubai only imposed the corporate tax on oil and gas companies and branches of foreign banks operating here. Taxation of companies in Dubai Silicon Oasis means these corporate taxes do not apply, as the free zone has its own regulations, including those related to the taxation of companies.

Tax exemptions in Dubai Silicon Oasis

Not only does the Dubai Silicon Oasis Authority impose no tax on companies, it also offers several incentives, among which:

  • no taxes on import and export procedures;
  • no tax on corporate profits;
  • no tax on income;
  • no tax on the repatriation of profits.

Our company registration consultants in Dubai can offer more information on the tax advantages companies in Dubai Silicon Oasis have.

Taxation of foreign shareholders in Dubai Silicon Oasis

Even if a company registered in Dubai Silicon Oasis is subject to no tax in this free zone, its foreign shareholders could be liable to pay certain taxes in their home countries from the profits made here. These taxes can be diminished based on the double tax treaties their countries have signed with the UAE.

For complete information on the taxation of companies in Dubai Silicon Oasis, please feel free to contact our company incorporation agents in Dubai.