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  • Countries With Zero Income Tax

    Countries With Zero Income Tax

    Dreaming of keeping more of what you earn? Exploring countries with zero income tax or countries with no personal income tax might be your first step toward financial freedom. Around the globe, there are several tax free countries in the world that not only offer stunning landscapes and vibrant cultures but also attractive tax regimes.

    Whether you’re an expat, investor, or digital nomad, these countries with zero tax on foreign income or countries with zero foreign income tax can help maximise your earnings. In this blog, we’ll uncover the best tax free countries, along with countries with less income tax or countries tax free, so you can discover where your money—and your lifestyle—can go further.

    Countries With No Income Tax and Low-Tax Options

    Yes, living in a country without income tax is possible. Several countries have no income tax or zero foreign income tax, attracting expats, entrepreneurs, and digital nomads seeking to reduce their tax burden legally.

    Countries With Zero Income Tax

    Some countries without personal income tax do not levy income tax on residents or citizens. These are considered some of the best tax-free countries in the world. Examples include:

    • United Arab Emirates (UAE)
    • Qatar
    • Bahrain
    • Kuwait
    • Oman
    • Saudi Arabia
    • Monaco
    • The Bahamas
    • Bermuda
    • Vanuatu

    Countries With Zero Tax on Foreign Income

    Other nations do tax local income but offer territorial tax systems, meaning foreign-sourced income is not taxed. These are countries with zero foreign income tax or countries with zero tax on foreign income. Notable examples include:

    • Panama
    • Costa Rica
    • Malaysia
    • Nicaragua
    • Singapore (partial)
    • Georgia (in some cases)

    These are ideal for remote workers, freelancers, and online entrepreneurs who earn money outside their home country.

    Best Tax-Free Countries for Expats

    Many tax-free countries with favourable tax laws also offer residency or citizenship programs. The best tax-free countries often combine low taxes with a high quality of life:

    • UAE: No personal tax, modern infrastructure, or residency visas are available.
    • Monaco: High-end lifestyle, zero income tax.
    • Bahamas: No income tax, beach paradise.
    • Vanuatu: Offers citizenship by investment, no income tax.

    Countries With Less Income Tax

    If you’re not looking for countries with no income tax, but simply want to pay less, consider:

    • Bulgaria: Flat 10% income tax.
    • Hungary: Flat 15% personal income tax.
    • Georgia: Low taxes and attractive tax incentives.

    Relocating to countries with no personal income tax or countries with less income tax can be a strategic move for financial freedom. However, it’s essential to consider factors such as cost of living, residency requirements, and international tax obligations (like those from the U.S. or EU). Always consult a tax advisor to stay compliant and ensure the move is financially beneficial.

    Top Countries with Zero Income Tax 2025

    Looking to maximise your earnings and reduce your tax liabilities? Choosing to live in one of the countries with zero income tax can be a powerful financial strategy.

    These nations offer legal frameworks that eliminate personal income taxes, and many also have no tax on foreign-earned income. Whether you’re a digital nomad, entrepreneur, or retiree, here are the top tax-free countries in the world to consider.

    1. United Arab Emirates (UAE)

    The United Arab Emirates is one of the most prominent countries with no income tax. Residents enjoy a 0% personal income tax rate and zero tax on foreign income, making it an attractive destination for remote workers and international business owners.

    Cities like Dubai and Abu Dhabi boast world-class infrastructure, luxury living, and safety. While the UAE introduced a corporate tax on large businesses in 2023, it does not affect individual income, keeping the country firmly on the list of best tax-free countries for individuals and freelancers.

    2. Bahamas

    The Bahamas is a dream destination for those who want to live in a tropical paradise while enjoying full tax freedom. As one of the countries with no personal income tax, the Bahamas also exempts residents from capital gains and inheritance taxes. It is especially popular with retirees, remote workers, and high-net-worth individuals.

    The government offers easy paths to residency for those who invest in local real estate, making it a top choice among countries with zero income tax and an appealing option for people looking to escape heavy taxation.

    3. Bermuda

    Bermuda is another leading contender among countries with no income tax, offering a tax-free haven for individuals. No personal income, wealth, or capital gains taxes exist.

    The island is a hub for the finance and insurance industries, attracting professionals and companies from around the globe. Although Bermuda’s cost of living is among the highest in the world, the absence of income tax makes it a strategic choice for those seeking countries with less income tax pressure, particularly in high-income professions.

    4. Cayman Islands

    The Cayman Islands are world-renowned for being a top-tier offshore financial centre and one of the most popular countries with zero income tax. Residents pay no personal income tax, corporate tax, or capital gains tax.

    This, combined with a stable political climate and well-established financial services sector, makes the Cayman Islands a hotspot for global investors and fund managers. As one of the top countries with zero foreign income tax, it’s a preferred jurisdiction for businesses and individuals wanting complete tax neutrality.

    5. Monaco

    Monaco is one of Europe’s wealthiest and most prestigious countries with no personal income tax. It offers zero income tax to residents (excluding French nationals), with no capital gains or wealth tax.

    The principality is home to the rich and famous, offering an ultra-luxurious lifestyle, a beautiful Mediterranean climate, and strong financial privacy. While the cost of living is exceptionally high, Monaco remains one of the most attractive countries that are tax-free for ultra-high-net-worth individuals.

    6. Qatar

    Qatar does not levy personal income taxes, making it one of the few countries with no income tax that offers both tax freedom and a high standard of living. It is ideal for skilled energy, aviation, and construction professionals.

    Foreign income is also untaxed, making it one of the most advantageous countries with zero tax on foreign income for expatriates. With growing infrastructure and major international events, Qatar continues to rise in global popularity as a tax-free destination.

    7. Kuwait

    Kuwait is another oil-rich Gulf state where residents pay no personal income tax, making it one of the notable countries with less income tax globally. Its booming energy sector and competitive salaries attract professionals from all over the world.

    Expatriates enjoy generous employment packages and a relatively high quality of life. While the social environment is more conservative, Kuwait’s appeal as one of the countries with zero foreign income tax remains strong for financially-minded individuals.

    8. Brunei

    Brunei offers a peaceful lifestyle with complete personal income tax exemption. As one of the world’s lesser-known tax-free countries, Brunei is fully funded by oil and gas revenues, allowing it to maintain generous public services without taxing individuals.

    There is no income tax, capital gains tax, or inheritance tax, making it one of the most tax-free countries on this list. It’s quiet, structured environment is ideal for energy, education, and public service professionals.

    9. Vanuatu

    Vanuatu is a Pacific island nation that has earned a spot among the top countries with zero income tax and countries with zero tax on foreign income. It levies no personal income tax, corporate tax, or withholding tax, making it an attractive option for remote workers, investors, and crypto enthusiasts.

    Vanuatu also offers a Citizenship by Investment program, allowing individuals to gain legal residence in a tax-free jurisdiction. While infrastructure is less developed, it’s one of the most accessible and affordable countries with no income tax.

    10. Saudi Arabia

    Saudi Arabia does not impose personal income tax on wages and salaries, placing it firmly among the countries with no personal income tax. While other taxes like VAT and certain business levies exist, individual salaries remain tax-free.

    Expats working in Saudi Arabia often enjoy high incomes, housing allowances, and tax-free packages. The kingdom’s Vision 2030 development plan continues to improve the quality of life, making it one of the more progressive countries with zero foreign income tax in the Middle East.

    Whether you’re seeking a tropical island escape, a luxurious European base, or a business-friendly Middle Eastern hub, these countries with zero income tax offer a powerful opportunity to grow and preserve your wealth. Each country on this list provides legal ways to eliminate personal income tax from the Bahamas to the UAE.

    Before relocating, consult a tax advisor to understand your home country’s tax obligations. If you’re ready to explore the best tax-free countries and unlock financial freedom, any of these destinations could be your next smart move.

    Take the First Step Toward Tax-Free Living

    In a world where taxes can take a significant portion of your hard-earned income, relocating to countries with zero income tax or countries with zero foreign income tax offers a compelling path to financial freedom. Whether you’re a digital nomad, entrepreneur, investor, or retiree, the tax free countries in the world listed above provide legal, viable options to maximise your income and protect your wealth.

    From the modern infrastructure of the UAE to the tropical allure of the Bahamas and the financial privacy of Monaco, the best tax-free countries combine tax advantages with an exceptional quality of life. If you’re not quite ready for zero-tax living, countries with less income tax, such as Georgia, Bulgaria, or Hungary, offer a middle ground worth considering.

    Choosing the right destination from countries with no income tax, countries with no personal income tax, or countries with zero tax on foreign income requires careful planning. Each jurisdiction has unique regulations, residency requirements, and implications based on your nationality.

    Let the experts at Shuraa Tax guide you on your journey. With deep regional expertise and global tax knowledge, we help individuals and businesses relocate seamlessly to countries tax-free while staying fully compliant with international laws.

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

    Start your journey toward tax efficiency today—with Shuraa Tax, your trusted partner in unlocking global financial freedom.

    FAQs

    Q1. Does one need to move abroad to reduce tax burdens?

    Not necessarily. It’s possible to optimise taxes through legal tax planning, offshore structures, or earning income in countries with zero tax on foreign income without relocating.

    Q2. How do tax-free countries make money?

    Many tax-free countries worldwide rely on tourism, natural resources, business licensing, or sovereign wealth funds instead of personal income tax.

    Q3. Do individuals need to pay taxes while obtaining a second citizenship via investments?

    It depends on the country. Some countries with no personal income tax or those without income tax do not impose taxes during or after obtaining citizenship.

    Q4. Is it possible to optimise taxes without moving abroad?

    Yes. Legal structures and international tax planning allow you to benefit from countries with zero tax on foreign income without relocating.

    Q5. How do countries make money without taxes?

    Countries with no income tax often generate revenue from alternative sources, such as VAT, import duties, corporate registration fees, and tourism.

    Q6. Where should I move so as not to pay income tax?

    Some of the best tax-free countries include the UAE, Monaco, the Bahamas, Bermuda, and the Cayman Islands—all of which have no personal income tax.

    Q7. Do I have to move abroad to optimise my taxes?

    No. Strategic planning can allow you to use countries with zero foreign income tax

    for tax benefits without changing residency.

    Q8. Do I have to pay taxes when obtaining a second citizenship by investment?

    In most tax-free countries, second citizenship by investment does not trigger personal income tax obligations.

    Q9. Which countries are tax-free?

    Examples of countries with no income tax include the UAE, Bahamas, Bermuda, and Qatar — popular countries tax free for residents.

    Q10. Is the UAE a tax-free country?

    Yes. The UAE has zero income tax for individuals, making it one of the best tax-free countries for expats.

    Q11. Is the US a tax-free country?

    No. The US taxes its citizens on worldwide income, even if they live abroad.

    Q12. Is Germany tax-free?

    No. Germany has a progressive income tax system and is not one of the countries with the least income tax.

    Q13. Is Switzerland tax-free?

    No. Switzerland has personal income taxes, though rates vary by canton. It’s not one of the countries tax free, but it may offer favourable conditions.

    Q14. Is Sweden tax-free?

    No. Sweden is known for high personal income taxes and is not among the countries with no income tax.

    Q15. Is Luxembourg a tax haven?

    Luxembourg is not a tax-free country, but due to its favourable corporate tax structure, it’s often seen as business friendly.

  • What is an Input Tax and how you can recover it?

    What is an Input Tax and how you can recover it?

    Input tax is the tax that a taxable person pays or a business on the purchase of various good or services or while during imports related to taxable supplies. E.g., a shopkeeper purchases goods from a wholesaler and pays tax for the same. The Federal Tax Authority (FTA) in the UAE has special provisions in place for Input Tax recovery.

    Input Tax recovery refers to the amount repaid by the FTA to all taxpayers who fulfill the conditions for Input Tax Recovery. According to UAE VAT provisions, a taxable person can reduce the value of eligible input tax from the total tax payable and pay only the balance amount as output tax. It is important as it has an impact on the current cash flows and ongoing expenses incurred by a Company during the financial year.

    Conditions to follow for Input Tax Recovery

    Only VAT registered businesses or a person is eligible for Input tax recovery in the UAE. All the non-tax registrants are ineligible for claiming the input tax recovery. It is mandatory to meet the following conditions for input tax recovery.

    Only taxable supplies are eligible for Input tax recovery

    An important condition for input tax recovery is that it is valid only in connection with taxable supplies. This refers to the supplies on which UAE VAT is levied. One cannot claim input tax related to the exempt supply as they are invalid for input tax recovery.

    Recipient of the input tax recovery to obtain and secure the tax invoice

    Tax invoices contain details of those supplies on which input tax recovery claim is made. The receiver must maintain proper tax invoices for reference as well as maintaining records. This practise is important when claiming input tax recovery on supply. Additionally, the tax invoice must also be as per the FTA guidelines & UAE VAT regulations.

    Timely payment of consideration for the supply

    For recovering input tax, it’s important that the receiver pays or intends to make the payment of consideration for the supply within the tenure of six months which starts from the agreed date of payment for the supply.

    The recipient must be a taxable person and must register for VAT in order to claim input VAT recovery

    Input tax recovery is important for a proper filing of VAT returns in UAE and to avoid any tax penalty. Certain input VAT is not recoverable as per UAE VAT regulations though it qualifies above conditions. Taxable persons or businesses need to identify correct supplies on which input tax recover is possible. They should also meet the necessary conditions for claiming Input Tax.

    With Shuraa tax consultancy services, know everything about input tax recovery and its necessary conditions. Get the best tax service and help with your input tax-related queries with Shuraa Tax Consultants and Accountants qualified team of tax agents and consultants. Call or text us at +971 508912062 or send an email to info@shuraatax.com.

  • What records must businesses maintain for tax filing?

    What records must businesses maintain for tax filing?

    In accordance with the UAE Federal Tax Authority, companies in the UAE have to record their financial transactions for UAE tax filing every interval. Tax filing also referred to as VAT return filing has to be done by a taxable person at regular intervals depending upon the company’s tax period.

    Business and commercial entities are to ensure that their financial records are accurate and up to date. The companies need to ascertain that in order to file tax in Dubai or anywhere across the UAE they also have to maintain all the monthly, quarterly and a yearly financial transaction made under the company.

    The Federal Tax Law stated that commercial entities require to maintain company accounts, records, and commercial books. Also, the company needs to keep all the documents related to taxation, such as older tax returns, documents related to the FTA, etc.

    Although the documentation or records may vary from company to company – Shuraa Tax Consultants and Accountants have listed the most relevant documents that any business must record for UAE tax filing and to make it available to FTA if requested in future.

    • Companies must maintain records of all supplies and imports of goods and services for tax filing.
    • For tax filing, they must record tax invoices, tax credit notes, alternate documents for goods and services received.
    • For tax filing, they must have a record of tax invoices, tax credit notes and alternate documents issued.
    • Businesses should also keep a record of goods and services that have been disposed of or used for matters not related to the business.
    • A detailed record of VAT paid on the unused or disposed goods and services must also be documented.
    • Records of goods and services purchased for which the input tax was not deducted.
    • Records of exported goods and services in order to file tax returns.
    • Records of adjustments or corrections made to accounts or tax invoices.
    • Records related to Capital Assets like a register of capital assets, Input tax on a capital asset, related adjustments for at least ten years.
    • Output tax due on taxable supplies and output tax due on taxable supplies accounted for via the reverse charge mechanism.
    • Any records related to a real estate required to be kept shall be held for a period of 15 years after the end of the Tax Period to which they relate.

    In addition, companies should keep a VAT record or account which shows:

    • Output due on taxable supplies
    • Output tax due on based on reverse charge mechanism
    • Output tax due after the correction of any errors or adjustments;
    • Input tax recoverable on supplies or imports;
    • Input tax recoverable after the correction of any errors or adjustments.

    Failure to keep the required records and other information as per the Tax Procedures Law and the Tax Law will attract a penalty of AED 10000 for first-time failure or AED 50000 in case of repetition. There are other penalties related to failures in record keeping and submitting details requested by authorities.

    Tax filing in the UAE is best done by a taxable person or tax and accounting consultants offering accounting services in Dubai or anywhere across the UAE.

    We are Shuraa Tax Consultants and Accountants do not only do tax filing but also offer you tax return preparation services. Our tax and accounting consultants make sure that you have every document recorded for tax filing. At Shuraa Tax we offer you certified tax preparer that is well aware of the various tax laws applied by the FTA for tax filing in the UAE.

    So, if you are doubtful on how to file your own taxes or are searching for the right tax filing consultants – simply speak to our taxation experts or tax and accounting consultants.

    Call us on +971508912062 or email us info@shuraatax.com. 

  • What are the Types of Taxes in the UAE?

    What are the Types of Taxes in the UAE?

    The UAE is known around the world as one of the most tax-friendly countries. One of the biggest attractions for expats, investors, and entrepreneurs is that there’s no personal income tax or capital gains tax here. In fact, Dubai and Abu Dhabi have even been ranked among the most tax-friendly cities globally, which makes the UAE a hotspot for people who want to live, work, and grow their businesses in a low-tax environment.

    That being said, the UAE isn’t completely tax-free. Over the past few years, the government has introduced several types of taxes to support economic growth and reduce reliance on oil revenues. These include the 5% Value Added Tax (VAT) introduced in 2018, the 9% Corporate Tax that started in 2023, as well as Excise Tax on certain goods, Customs Duties on imports, and municipality and tourism-related fees.

    So, let us break down the main types of taxes in the UAE in simple terms, so that both residents and businesses can better understand how the system works and what it means for them.

    Does Dubai Have Taxes?

    Dubai is often seen as a tax-free city, but the reality is a bit more nuanced. While there is no personal income tax, no capital gains tax, and no inheritance tax, Dubai does have certain other taxes and fees that residents, businesses, and visitors should know about.

    Some of the key taxes include:

    • Value Added Tax (VAT)
    • Corporate Tax
    • Excise Tax
    • Customs Duties
    • Municipal and Tourism Taxes

    So, while Dubai doesn’t tax personal income, it does have a structured system of indirect and business-related taxes.

    Types of Taxes in the UAE

    Here are the different types of taxes in Dubai and other Emirates for businesses and individuals:

    1. Value Added Tax (VAT)

    Value Added Tax (VAT) is a consumption tax that is levied on the supply of most goods and services at each stage of the supply chain. While businesses collect and account for the tax on behalf of the government, the tax is ultimately borne by the end consumer.

    Current VAT Rate:

    The standard VAT rate in the UAE is 5%, which applies to most goods and services. This is actually quite low compared to many other countries around the world.

    Types of VAT in the UAE:

    The UAE has three main VAT categories:

    • Standard Rate (5%): This applies to most things you buy – groceries, clothes, electronics, restaurant meals, hotel stays, and most services.
    • Zero Rate (0%): Exports outside the GCC, international flights, some education services (schools, universities), healthcare services (approved treatments, medicines), and investment-grade precious metals. Businesses still need to report these in VAT returns but at 0%.
    • Exempt: Some goods and services are completely exempt from VAT, meaning no tax is charged and businesses can’t claim input tax credits on these items.

    Who needs to register for VAT in UAE?

    Businesses must register for VAT if their annual turnover exceeds AED 375,000. There’s also a voluntary registration option for businesses with turnover between AED 187,500 and AED 375,000. If you’re a non-resident business making supplies in the UAE where VAT should be charged, you need to register regardless of your turnover amount.

    VAT Refunds for Tourists:

    Visitors can claim a VAT refund on purchases over AED 250 (including VAT) when shopping at participating stores, similar to tax-free shopping in other countries.

    How VAT works (example):

    If a restaurant sells a meal for AED 100, it must add 5% VAT (AED 5). The customer pays AED 105, and the restaurant passes AED 5 to the Federal Tax Authority (FTA). The restaurant can also claim back VAT it paid on supplies (like ingredients).

    2. Corporate Tax (CT)

    Corporate Tax (CT) is a direct tax levied on the net profit or taxable income of corporations and other businesses from their activities. It is a significant shift in the UAE’s long-standing, low-tax environment.

    Current Corporate Tax Rates:

    The UAE has a three-tier corporate tax system:

    • 0% on profits up to AED 375,000.
    • 9% on profits above AED 375,000 (one of the lowest corporate tax rates globally).
    • 15% on certain large multinational companies with global revenues over EUR 750 million, following OECD’s global minimum tax rules.

    Who pays Corporate Tax in the UAE?

    • All mainland companies.
    • Free Zone companies are also within scope, but qualifying free zone income (such as trade with outside UAE or other free zones) can still enjoy 0% tax, provided they meet the UAE’s substance rules.
    • Foreign companies with a permanent establishment in the UAE.

    Exemptions:

    • Government entities and government-controlled companies.
    • Extractive industries (like oil & gas) are taxed separately by the emirates.
    • Certain non-profits, charities, and public benefit organisations (if approved by the Cabinet).

    What Counts as Taxable Income?

    Corporate tax is calculated on net taxable profits, which means:

    • Your total business income
    • Minus allowable business expenses
    • Minus any applicable deductions or exemptions

    Deductions & Reliefs:

    • Businesses can deduct expenses like salaries, rent, utility bills, and R&D costs before calculating taxable income.
    • Losses can be carried forward and offset against future taxable profits.
    • Small Business Relief: Companies with revenues below AED 3 million (until 2026) can elect for relief and be treated as if they made no taxable income.

    3. Excise Tax

    Excise tax is an indirect tax levied on specific goods that are deemed to be harmful to human health or the environment. It is a form of “sin tax” and was introduced to discourage the consumption of these products and to generate additional revenue for the government. Unlike VAT, which is applied at each stage of the supply chain, excise tax is a one-time tax collected at the point of import or production.

    Products & Rates:

    • 100% on tobacco and tobacco products.
    • 100% on energy drinks.
    • 50% on carbonated drinks (except plain sparkling water).
    • 50% on sweetened drinks (introduced in December 2019).
    • 100% on electronic smoking devices and related liquids.

    Who pays the Excise Tax in the UAE?

    Excise tax is paid by importers, producers, and stockpilers of excisable goods. Ultimately, the cost is passed on to the consumer through higher retail prices.

    4. Custom Duties

    Customs duties are taxes levied on goods imported into the UAE. They are collected by UAE Customs at the border and then distributed among the emirates or GCC states (since the UAE is part of the GCC Customs Union).

    Standard Rate:

    Generally, 5% of the cost, insurance, and freight (CIF) value of most goods.

    Exceptions & Special Rates:

    • 50% duty on alcohol.
    • 100% duty on tobacco products.
    • Some goods may be subject to higher/lower rates depending on trade agreements.

    Free Zones Advantage:

    Goods imported into the UAE Free Zones are exempt from customs duties as long as they stay within the zone. If they are later imported into the mainland, then customs duty applies.

    Exemptions:

    • Goods imported within the GCC states (if meeting the rules of origin).
    • Diplomatic and military imports.
    • Personal belongings and household items of UAE nationals returning to the country.
    • Imports for charities and certain public organisations.

    While the overall customs policy is governed by federal law, customs administration and collection are managed by the individual Emirate’s customs departments, such as Dubai Customs, Abu Dhabi Customs, etc., under the general oversight of the Federal Authority for Identity, Citizenship, Customs, and Ports Security (ICP).

    5. Municipal Taxes

    Municipal taxes are local-level taxes imposed by emirates on residents, property users, and hospitality services. These are not federal taxes but are collected by municipal authorities in each emirate.

    1. Dubai:

    Housing Fees: A municipal tax levied on residential tenants. It is calculated as 5% of the annual rental value, as specified in the tenancy contract. The fee is typically paid monthly and is included as a separate line item on the tenant’s Dubai Electricity and Water Authority (DEWA) bill.

    Market Fees: A similar tax, also at a rate of 5%, that applies to commercial properties.

    2. Abu Dhabi:

    Rental Fees: A fee of 5% of the annual rental value is levied on tenancy contracts. This fee is added to the monthly Abu Dhabi Distribution Company (ADDC) utility bill. It’s crucial to note that these fees apply to expatriate residents, while UAE citizens are typically exempt from this charge on residential contracts.

    6. Personal Income Tax

    Income tax is a tax on salaries, wages, and personal earnings. In most countries, individuals pay income tax directly from their monthly salary or annual income.

    However, the UAE is famous for having no personal income tax. Residents and expatriates do not pay tax on salaries, wages, or investment income (like dividends, rental income, or capital gains). There is also no inheritance tax or wealth tax in the UAE.

    7. Other Fees & Indirect Taxes

    In addition to VAT, Corporate Tax, Excise, and Customs Duties, the UAE also has smaller but important indirect taxes and fees that residents, visitors, and businesses should know about:

    Road Tolls:

    • Dubai (Salik): Introduced in 2007, each time a car passes through a Salik gate, AED 4 is deducted automatically via a prepaid Salik tag. There’s no daily maximum cap.
    • Abu Dhabi (Darb): Introduced in 2021, AED 4 per crossing during peak hours at selected toll gates. Maximum daily cap is around AED 16 per vehicle.

    Stamp Duties and Administrative Fees:

    • These are one-time fees paid to government departments for specific transactions, particularly in the real estate sector.
    • Property Transfer Fees: When a property is bought or sold, a mandatory fee is paid to the relevant Land Department. In Dubai, this fee is 4% of the property’s sale price or market value, typically split between the buyer and the seller. In Abu Dhabi, the fee is 2% of the property’s value. Other emirates have similar charges.
    • Mortgage Registration Fees: In Dubai, a fee of 0.25% of the loan amount is charged for registering a mortgage.

    Note: Keep in mind, tax rates are subject to change. Contact experts at Shuraa Tax for up-to-date information.

    Stay Compliant, Stay Stress-Free with Shuraa Tax

    The UAE continues to stand out as one of the world’s most tax-friendly countries. With no personal income tax and low rates on business profits, it’s a great place to live, work, and build a business. But at the same time, there are now a few taxes like VAT, Corporate Tax, Excise Tax, and municipal fees that both individuals and companies need to understand.

    For business owners, keeping up with tax rules and filing everything correctly can feel tricky. That’s where Shuraa Tax can help. From corporate tax and VAT registration to excise tax, accounting & bookkeeping, payroll, and tax residency certificates, our experts handle it all so you can focus on running your business with peace of mind.

    If you want expert help and a smooth, hassle-free way to handle your taxes in the UAE, just reach out to Shuraa Tax today.

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

  • Why do you need an FTA tax agent in UAE?

    Why do you need an FTA tax agent in UAE?

    Before understanding the need for an FTA tax agent in UAE, it is crucial to know who an FTA tax agent is. As per the Federal Law Number 7 of 2017 on Tax Procedures, a Federal Tax Authority Tax Agent also commonly known as an FTA Agent is an individual appointed for a Company to act in his name and on his behalf for his tax affairs.

    However, not everyone can become a tax agent in UAE. Individuals need to fulfil the mandatory requirements imposed by the Federal Tax Authority to become an FTA tax agent. The FTA has specified conditions and qualifications, in addition to passing the Authority’s tests to become a tax agent in Dubai UAE.

    So, why exactly would Companies require an FTA tax agent in Dubai?

    An FTA tax agent’s key role is to successfully implement UAE tax systems for your company. Nevertheless, there are a lot of contributions an FTA agent makes towards the taxation functioning of a company.

    Some of them are listed below:

    • FTA Tax agents strengthen ties between the Federal Tax Authority and the taxable persons.
    • FTA tax agent in UAE provides advanced knowledge and extensive practical experience which ultimately benefits the company.
    • A tax agent represents any entity or individual before the Authority, helping them meet their tax commitments and know their rights.
    • Tax agents help businesses be tax compliant, manage records, meet standards accurately, avoiding errors in registration.
    • FTA tax agents in Dubai are basically strategic partners for the companies. With businesses to fulfill their tax obligations toward the Authority, tax agents provide services such as filing returns, internal tax audit and prepare needed accounting procedures for tax compliance.
    • Tax agents are required to be fluent in Arabic and English. Because of which, companies can be locally efficient in terms of Arabic and translate documents effectively.
    • FTA agents can also submit requests for reconsideration of decisions issued by the FTA.
    • Tax agents can be helpful to represent foreign & offshore companies before FTA.

    If you are looking out for a competent tax agent in Dubai, then SHURAA’s Tax Agents can help you! Shuraa Tax Consultants offer FTA certified tax agents to manage all your requirements related to tax services, tax consultation and VAT registration in the UAE.

    To know more about our tax agent or for existing offers on tax and accounting services request a call back on +971508912062.

  • Will companies in the UAE have to reissue tax invoices?

    Will companies in the UAE have to reissue tax invoices?

    The Federal Tax Authority (FTA) recently clarified the exchange rates to be used for tax invoices which are raised in AED as well as in other foreign currencies. This was announced through VAT Public Clarification VATP004.

    According to the FTA, companies issuing tax invoices in foreign currencies will make use of the exchange rates applicable as per the date of supply. The circular also stated that only the exchange rates mentioned and documented by the UAE Central Bank are to be used in the tax invoices.

    The clarification was circulated to UAE companies in May 2018. Several companies were uncertain if they had to reissue the old invoices (i.e. an invoice dated from January 2018 until the date of clarification 17 May 2018). However, to everyone’s relief, the FTA also quoted that, “There is no requirement for businesses to reissue historical tax invoices from periods prior to 17 May 2018 to show the Central Bank exchange rate, provided the exchange rate used is from a reliable source and the same source has been used consistently.”

    Nevertheless, the FTA also noted that in case a tax invoice was issued after the 17 May 2018 and the date of supply was before 17 May 2018, companies need to make use of the older exchange rates published under the UAE Central Bank which were published in January 2018.  According to the circular, business entities need to make use of exchange rates provided by the Central Bank of the UAE. The circular also said that in terms of failure to account for the due tax on imports as per the FTA tax compliances there could be penalties.

    If you as a company are still not sure how to get your tax invoices tax compliant, book a VAT consultation with Shuraa Tax Consultants in Dubai. For more information call a Shuraa tax consultant in Dubai. Simply call on +971508912062. You may also drop in an email on info@shuraa.com or read more about Shuraa Tax Consultants on www.shuraatax.com.