T
he United Arab Emirates is a Federation. It is arranged into seven emirates Abu Dhabi, the capital of UAE, Dubai, Sharjah, Ajman, Umm Quwain, Ras Al Khaimah and Fujairah. The constitution allotted powers between the Federal government and the government of each seven Emirates. Further, it provides the legal structure to the federation and is the foundation of all legislation proclaimed at a federal and Emirate level. In each federal government, they have exclusive jurisdiction in various substantive matters not limited to foreign policies, security and defence. If the enactment is passed at the federal level it will have the supremacy over the local laws of each Emirates.The local authority is permitted to regulate all local matters which are not subjected to the federal legislation. Therefore, these local regulators are having solid powers to control commercial activities, issuing trade licences and effect the incorporation of corporate entities to the extent that such activity is not already regulated under federal legislation.
The regulatory framework is based on both principles of civil and Islamic Sharia’s law. Sharia law is the main source of law.
Dynamic Economy
Dubai became the most dynamic and diversified economy in the GCC. It serves as the biggest re-exporting centre in the Middle East.
Strategic Location
Dubai is a time zone bridge between the Far East and Europe on the East-West axis and the CIS and Africa on the north-south axis. With its central geographic location between Asian and European markets, Dubai has worked hard to establish itself as an integral part of the global trade mechanism. On this ground, Dubai becomes a regional hub city.
No Corporate Income Tax
The UAE currently has no system of federal income taxation.
No Withholding Taxes
There are no withholding taxes in the UAE that would apply to payments such as royalties, interest or dividends etc. made by UAE entities to another entity or person (resident or non-resident).
No Stamp taxes
Currently, there are no separate stamp taxes levied in the UAE.
No Personal taxes
Income is currently not subject to personal income taxes in the UAE and there is no requirement to file income tax returns.
