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Taxation of Companies in Jebel Ali Free Zone

Taxation of Companies in Jebel Ali Free Zone

Dubai is one of the most prolific emirates in the UAE due to its free zones which provide for numerous advantages when setting up free zone companies. One of the most sought free zones is Jebel Ali Free Zone which is one of the first free zones the Emirate has enabled. Jebel Ali Free Zone is currently the first trade zone to be established between the largest seaport and airport in the world.

Our company formation consultants in Dubai can help foreign investors set up companies in Jebel Ali Free Zone.

Taxes in Jebel Ali Free Zone

There are several reasons why foreign investors are interested in opening companies in Dubai, and especially in Jebel Ali Free Zone. Among these reasons are full foreign ownership which is permitted and the lack of taxes. Even if the tax laws in Dubai provide for the income tax, this tax only applies to foreign companies operating in Dubai in the oil and gas industry. Branches of foreign banks are also subject to the income tax in Dubai. Gas and oil companies must pay a 55% tax, while banks a 20% tax. However, Dubai has concluded several double taxation agreements which provide for tax deductions or exemptions.  Other than this, there are no taxes applied in Dubai or its free zones, therefore Jebel Ali Free Zone.

Tax exemptions in Jebel Ali Free Zone

Considering the intense trading activities in Jebel Ali Free Zone which involve passing through various customs procedures, the Jebel Ali Free Zone Authority has enabled a 0% tax on the costs incurred by some of these procedures in order to attract foreign investors. The Authority provides for 0% import and re-export duties. Moreover, the local authorities have also enabled a 50-year exemption on the corporate tax which can be renewed. Individuals also benefit from a 0% rate on the personal income tax, however, Dubai residents, such as foreign shareholders of local companies, must pay attention to the taxes applied in their home countries on foreign-sourced income. The repatriation of capital is also 100% tax-exempt in Jebel Ali Free Zone.

For complete information on the taxation of companies in Jebel Ali Free Zone, do not hesitate to get in touch with our Dubai company incorporation representatives. You can also contact us if you want to open a company in Dubai or in any of its free zones.