Tax exemption benefits for business in UAE

October 6, 2023

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Business is an amalgamation not only of the different operational processes but also of environmental processes which create an atmosphere where businesses thrive. In these processes, an important component is money that the business earns and uses for expenses incurred. It is the remaining amount that is termed as profit and can be used for meeting personal expenses. The more profitable the business looks, the higher the chances of are of it being given an existence by an investor, keeping all else constant.

This is theory used by the government of the UAE to subtly invite investors who have conquered other areas and now look to expand their business empires to areas they had not approached. It is for this reason that the UAE government has provided many incentives in many different forms.

  1. The first incentive provided by the government is the infrastructure development that has made business easier naturally. From offices to transport, every facility is world class.
  2. The second incentive is easy processing of documents and requests for business setup Dubai.
    Licensing and legislation for new types of businesses has been done so that the environment of the UAE is friendly for those who bring in new ideas. This is the third incentive for people looking to own a business setup Dubai.
  3. The forth and perhaps the most important incentive is a financial one. The UAE authorities have introduced a very tempting tax exemption law that has made the strongest impact in attracting investors to the UAE.

As mentioned above, the higher the profits, the more like investors are to put their money in the business. Profits definitely rise when taxes are low or non-existent.

Benefits of tax exemption

Let’s look at some of the benefits of tax exemptions for businesses in Dubai:

  1. Firstly, cost of business reduces drastically as taxes normally make a huge chunk of the total costs incurred. The decrease in costs allows for businesses to use the money to expand further and improve efficiency that further decreases costs.
  2. Low or non-existence of tax allows the companies to indulge in a price competitive market which not only allows perfection competition but allows for businesses to explore avenues through research and development to capture higher share of the market by innovation.
  3. Tax exemption also means that the UAE government has seen a rise in the business activity in the UAE as investors felt secure while investing in businesses in the UAE.
  4. Repatriation of higher profits to the home country is one of best benefits that the tax exemption policy has provided to the entrepreneurs.

How to use the opportunity to operate tax free?

Investors often do not have details of the business processes in other countries. It is for this reason that they engage professional business consultants Dubai like KWS Middle East. These business consultants Dubai are experienced in company formation and business registration Dubai. But this is not where they stop in fact they can take responsibility of handling secondary tasks like product and trademark registration after business registration Dubai is complete. The experts at the firm provide complete and updated information on taxation system and details on all business processes that make it easier for foreign investors to setup and run their businesses without obstacles that they initially think they would have to face.

Call to action:

 Looking for support with your new investment in the UAE? Call us now and we will provide you with all the services you require for a successful business venture in the UAE.

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