“WHAT DO INDIAN BUSINESS AND EXPATS NEED TO KNOW ABOUT UAE TAX LAWS?”
The UAE remains an emerging business hub; it has a strategic location for businesses to grow, as it is among the world’s top tourist destinations, with business-friendly policies. All the big firms, MNEs, and large corporations find the UAE the best in terms of business expansion; Indian businesses are one of them. When talking about business expansion or even career mobility to the UAE, it becomes essential for the responsible authorities or individuals to explore UAE taxation. UAE is a country with flexible tax laws, but that doesn’t encourage ignorance at all; however, the country offers significant tax advantages to Indian businesses and expats, but that doesn’t allow them to take the UAE tax laws lightly.
Hence, if you are an Indian looking forward to moving to the UAE or a businessman planning for business expansion to the region, you must equip yourself with all the relevant insights about the UAE tax laws so that your journey goes smoothly. To help you achieve significant clarity about the UAE taxation for Indians, we have brought forward this detailed guide discussing all the important UAE taxes for expats and businesses.
UAE TAX REGIME: AN OVERVIEW
To clear your foundational knowledge about UAE taxation, let’s first discuss the UAE tax regime. Later, we can jump towards the tax laws for Indian expats and businesses. Here are the key tax laws implied in the UAE on expats and businesses; aspirants are encouraged to understand each one of them efficiently.
1: NO PERSONAL INCOME TAX:
According to the UAE tax laws, no taxes are imposed on an individual’s salary, wage, investment returns, dividends, or any other source of income; this law is the same for all people residing in the UAE, whether an Indian expat working or residing in the region. This is a beneficial policy of the UAE taxes for expats as it allows them to keep their 100% salary; hence, one of the top reasons why Indians prefer moving to this country.
2: CORPORATE TAX:
UAE corporate tax for Indians is applied on business profits, which is 0% on taxable profits up to AED 375,000; whereas, 9% on taxable profits over AED 375,000. Comparatively, these tax rates are much lower than the Indian corporate tax rates of around 22% to 30% with surcharge; hence, these lower corporate tax rates are one more reason why Indian businesses choose the UAE for business expansion.
3: VALUE-ADDED TAX:
VAT, also known as Value-added taxes, is essential in the UAE; hence, Indian expats should be well-informed about these tax laws for better survival in the region. UAE tax laws mandate a standard of 5% VAT on goods and services, whereas Indian businesses are obliged to register for VAT if their annual taxable turnover is more than AED 375,000. According to the UAE taxation, it is suggested that businesses file VAT returns quarterly in a year and keep the records as evidence for at least five years. To make the VAT procedure a bit simpler and more effective, new VAT rules and compliance changes have been introduced in the UAE.
CONCLUSION
It is concluded that, in comparison to other countries, the UAE tax laws are more flexible and efficient, especially for expats or foreign business expansions; Indian businesses and expats may find the UAE tax laws more in their favor because of the no-income tax policy. However, the tax laws and regulations are feasible for residents and businesses, but compliance is mandatory; therefore, it is essential for those planning to move themselves or their businesses to the UAE to first equip themselves with sufficient knowledge about the UAE tax laws, regulations, and compliance. This blog has covered all the essential and foundational factors of the UAE tax regime; aspirants can look into them deeply by taking structured UAE taxation courses.
FREQUENTLY ASKED QUESTIONS
Q1: Who offers UAE tax courses in India?
Answer: Many global and local learning partners offer UAE tax courses in India; the global institutes usually offer these classes online through their academic channels. Aspirants can take advantage of these virtual UAE tax courses and gain insights into the tax laws followed in the UAE without compromising on academic flexibility.
Q2: Why do Indian Businesses prefer expansion in the UAE?
Answer: There are several reasons why the UAE is preferred when thinking about business expansion; some of the top reasons making it an attractive spot for businesses are its strategic location, the region is a global business hub, the UAE tax regulations are feasible, etc.
Q3: Who is the best online tutor for UAE taxation courses in India?
Answer: Several experienced and expert UAE tax tutors are available in India; however, one of the best tutors with over a decade of industry experience is Sir Owais Mirchawala. He offers UAE tax online courses in India at Mirchawala’s Hub of Accountancy; under his guidance, students can get in-depth insights about the UAE tax regulations and their compliance.
