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UAE Over all Business Ranking

Tax Structure

The United Arab Emirates is an association of seven emirates, with sovereign emirate and local governments which does not have any imposed federal income tax regulation for general business within its emirates. An income tax decree is controlled and legislated by each of theEmirate in UAE. The implementation of these decrees is limited to foreign banks having its branches in UAE and the oil companies.

There is no personal tax for individuals living in the United Arab Emirates. Just like many countries in the Middle East, a major contribution towards the government spending derives by the revenues from the oil industry sector. The businesses in UAE do not have to pay any corporation or customs duty taxes for 50 years.

Municipality service charges are taxed on those individuals who live and work in UAE on rented accommodation. The restaurant bills generally include 5- 10% service tax charges on the food purchased. Likewise, hotels also charge 10 % municipality tax (service charge) on the standard room rates per night.

 




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