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.

In most Emirates, tax is payable by residential tenants at a rate of 5% of the annual rent and or commercial tenants at 10% of the annual rent.

In Abu Dhabi a property tax in charged on the renewal and obtaining of a business license. These taxes are assessed at around 5 to 10% of the applicant’s annual office rent and 5% of the annual rental of the residence of the manager/license holder.

In Dubai, all residential properties are subject to an annual property tax payable to the Dubai Municipality. Dependent upon the employment status of the tenant a tax of between 5-15% will be payable. All professional, managerial and other senior employees in commercial and industrial sectors are charged at the rate of 5% of their annual rent, whereas in the banking sector the rate increases to 15%.

In Sharjah, all leased residential properties are subject to an annual property tax payable to the Sharjah Municipality. This tax will be equal to 2% of the annual rent shown in the tenancy agreement.

The UAE’s double taxation treaties are actually designed to make it an even more attractive destination and prospect for those individuals and companies who originate from countries with aggressive taxation policies.

The treaties are in place to further reduce any potential taxation burdens being levied against foreign companies and citizens operating in the UAE who remit their profits abroad.

Many countries have anti-avoidance provisions which either set minimum levels of tax from income to benefit from tax treaties or set out lists of low tax countries which do not qualify under tax treaties.

The main agreements formed are:

1. Agreements on taxation depending on the income resulting from air transport
2. Agreements on avoidance of double taxation on income & profits resulting from international air transport
3. Agreements on avoidance of double taxation on income, capital gains & evasion of taxes