b. R & D Cess
There is no R & D cess
B TAX HOLDAYS & INCENTIVES
1. EXPORTS
There are no special incentives for exports.
2. ECONOMIC ZONES
Each of the seven Emirate has its own free zones. These free zones have various benefits suchas:
– 100% foreign ownership
– no restriction on repatriation of capital or income
– no customs duty for imports into free (but any sales outside free zone will be subject to customs duty)
– guarantee of no personal or corporate income tax for 15/50 years, renewable thereafter
– single window licensing procedures
Some of the important free zones and their websites are as under
-Jebel Ali Free Zone (www.jafza.co.ae)
-Dubai Airport Free Zone (www.dafza.gov.ae)
-Dubai Internet City (www.dic.ae)
-Dubai Media City (www.dubaimediacity.com)
-KnowledgeVillage (www.kv.ae)
-Dubai Maritime City (www.dubaimaritimecity.ae)
-Dubai International Financial Centre (www.difc.ae)
-SharjahAirport International Free Zone (www.saif-zone.com)
-Hamriyah Free Zone (www.hamriyahfz.com)
-Ajman Free Zone (www.ajmanfreezone.gov.ae)
-Ras Al Khaimah Free Zone (www.rakftz.com)
-Fujairah Free Zone (www.fujairahfreezone.com)
3. SPECIAL INCENTIVES
An entity manufacturing goods in UAE can export its goods to GCC countries without duty if its manufacture involves 40% value addition and the entity is owned 51% by GCC National.
C. FOREIGN TAX RELIEF
Tax credit under tax treaties
Although these provisions exist under the Treaties, they are of academic use since there is no personal or corporate income tax in UAE. However, on introduction of corporate income tax, such tax credit will be available. Detailed regulations awaited
D RELATED PARTY TRANSACTIONS
In the absence of taxation, there are no detailed rules for such transactions.
Under corporate income tax, transfer pricing regulations will be notified.
E. DOUBLE TAXATION TREATIES
UAE has signed double tax avoidance treaties with more than 10 cuntries such as
Albania, Algeria, Andorra, Argentina, Armenia, Australia (pending), Austria, Azerbaijan
Bangladesh, Barbados, Belgium Belarus, Belize, Benin, Bosnia & Herzegovina, Brunei, Bulgaria, Burundi
Cameron, Canada, Chad, China, Colombia, Comoros Islands, Costa Rica, Croatia, Cyprus, Czech Republic
Ecuador, Equatorial Guinea, Egypt, Estonia, Ethiopia
Faroe Islands, Finland, France
Gambia, Germany, Greece, Guernsey, Guinea
Hong Kong, Hungary
India, Indonesia, Iraq, Ireland, Italy
Japan, Jersey, Jordan
Kazakhstan, Korea Republic, Kosovo, Kyrgyztan
Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Luxembourg
Macedonia (FYR), Malaysia, Malawi (pending), Maldives, Malta, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique
Nepal, Netherlands, Nigeria, New Zealand
Pakistan, Palestine, Panama, Paraguay, Poland, Portugal
Romania, Russia, Rwanda
Senegal, Serbia, Seychelles, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, St Kitts & Nevis, Sudan, Switzerland, Syria
Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan,
Ukraine, United Kingdom, USA (FATCA and Transport), Uruguay, Uzbekistan
Venezuela, Vietnam, Yemen,
F. ADVANCE RULINGS
Not applicable
G. TAX RESIDENCY CERTIFICATES
Tax residency certificates (TRC) are issued by Ministry of Finance in case of
-individual
-non-individuals
TRC is issued in relation to a specific country with which UAE has DTAA treaty.
Detailed documents need to be submitted to the Ministry for TRC