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Taxation of Companies in Sharjah Free Zone

Taxation of Companies in Sharjah Free Zone

The UAE is made up of seven emirates, one of them being Sharjah. Like Dubai and Abu Dhabi, Sharjah also has its own free zones which provide many advantages for foreign investors. One of the most prolific free zones in this emirate is Sharjah Free Zone which allows foreign enterprisers to fully own companies established here. This is not the only benefit Sharjah Free Zone provides to foreign entrepreneurs, as the local authority offers many tax benefits to companies registered here.

Our company registration agents in Dubai can assist foreign investors and companies who want to open companies, respectively branch offices or subsidiaries in Sharjah and its free zones.

Taxes imposed in Sharjah and its free zones

Sharjah has its own taxation system, but it also falls under the tax regulations imposed by the UAE’s government which provides for the taxation of companies operating in the oil and gas industry and branches of foreign banks. However, the Sharjah Free Zone Authority has autonomy when it comes to the taxation of companies and it has established a tax-free environment for businesses registered in the free zone. Moreover, thanks to these tax exemptions Sharjah Free Zone has become one of the most important commercial and trading hubs in the UAE and in the Middle East.

If you want to open a company in Dubai or in Sharjah, you can rely on our local representatives.

Tax exemptions for companies in Sharjah Free Zone

When it comes to tax exemptions for companies and their foreign shareholders, Sharjah Free Zone is one of the best free zones in the UAE. Among the tax benefits offered to Sharjah free zone companies are:

  • full exemptions from the income tax;
  • full exemptions from the corporate tax;
  • tax-free repatriation of capital;
  • tax-free repatriation of profits.

The UAE has signed numerous agreements for the avoidance of double taxation through which foreign shareholders of companies registered in the Sharjah Free Zone will be exempt from the taxes they should pay in their home countries. These treaties apply to both individuals and companies owning shares in free zone companies in Sharjah.

For full information on the taxation of companies in Sharjah Free Zone, please contact our company incorporation consultants in Dubai.