Since the beginning of 2018, there is tax implemented in different areas that also concern Dubai business setup and others. Even for K&M Consultancy, it is crucial to give all the necessary attention so that people would understand better that it is not a cynical move. Moreover, the government also stated that they wouldn’t increase the VAT rate.
Obaid Al Tayer, Minister of State for Financial Affairs, stated that there is no interest from the government to raise Value-Added Tax (VAT) or excise tax. This aspect is a good indicator because the tax rate is rather low in comparison to other countries. That also means that anyone who will want to set up a company in UAE Dubai will not have to immensely raise the price for its products or services but also won’t have to struggle to employ more people and pay for the additional payments following the current law. Tayer referred to the period of five years. He also confirmed that there are no ongoing or planned studies about the introduction of income tax. That means that for many who want to open company in Dubai or anywhere else in the country, it won’t be a massive burden to the ones that want to start and develop in a specific field.
Meanwhile, the Ministry of Finance is working on corporate tax, but the process is at the very beginning and might take a long time. The whole process of it, for now, is about studying the possibilities to implement it not just applying it right away. The government itself doesn’t need much more revenues to deal with the expenses because the country’s economy is doing very good and there are numerous new projects and programs on the way to ensure local and global competitiveness.
There is excise tax introduced on October 1, but, according to the minister, it is too early to have an objective judgment about it. More time will show its strong and weak sides for certain parties. The exact opinion will come at the end of the year. Tayer’s comments on this and other matter regarding VAT was relevant because there was a lot of speculation about the possible increase in the amount of tax etc. that could negatively affect especially business startup Dubai.
We encourage everyone with new business setup Dubai - UAE not to be afraid of taxes or any other obstacles. The UAE is rich in opportunities so that it would be beneficial to develop at a particular time. Our pro services Dubai have a wide range of support to bring out the best outcome for those who want to achieve faster and more efficiency. We can also provide the newest information on VAT situation with tax consulting services to make the documentation easier or understand where some possible drawbacks are. Any company formation in Dubai should have the capacity to become better and thieve from good decisions. There are some businesses for sale in Dubai that anyone can use for their start and change as appropriate in a new vision. We have experience and the latest knowledge about different company setup in the UAE.