Dubai: Offshore Legal and Tax Regimes
Tax Treatment of Offshore Operations
Amongst the incentives offered to companies operating within the Jebel Ali Free Zone, the DIC and the DIFC are:
- Corporate Income Tax: No corporate income tax on profits. The exemption is for a period of 15 years with a guarantee of an extension for a further 15 years in the event that corporate income tax is introduced in Dubai. Currently only banks and oil companies are assessed to corporate income tax in Dubai. The key difference with companies operating in JAFZ is the guarantee of exemption in the event that corporate income tax is imposed by the government.
- Withholding Taxes: No withholding taxes.
- Import Duty: Exemption from all import duties on goods imported into the free trade zones. For all other imports, duties have been largely standardised at 5%.