The Impact of Law Offices in Dividend Distribution Tax

Posted by Professionallawyer on December 23rd, 2021

If there’s one thing Dubai is known for, it’s the thriving economy. The business hub is a beloved home for entrepreneurs, both local and foreign. But before you establish a corporate identity in the City of Gold, make sure you find a reliable law office in Dubai.

The basics of dividend distribution tax in Dubai

Did you know that companies incorporated in Dubai are generally not required to pay these specific taxes?

• The dividend income received from local or foreign investments
• The dividends paid to local or foreign recipients
• Personal income or the profits made by companies and individuals

In addition, branches in Dubai with an overseas parent company can benefit from the UAE’s double tax treaties. This means that businesses from countries like Singapore, France, New Zealand, Canada, Malaysia, Japan etc and almost ninety countries:

• Have tax reductions for foreign investments.
• Have reduced tax rates for capital gains.

But, of course, there are still exemptions. For instance, foreign bank branches are still subject to 20% corporate tax, while oil and gas companies must pay 55%.

How a law office in Dubai can help you deal with corporate taxes

Thanks to the lack of taxes, Dubai makes it incredibly desirable for foreign investors to set up shop in the city. However, as a foreigner, you will need to meet particular requirements before starting a business.

For example, you might be required to present the following documents depending on the free zone:

• Business plan
• Passport copies of the company’s executives
• Audited financial reports for corporate entities
• Certificate of reference from a personal bank

In addition, Dubai has specific rules regarding the chosen name of your business. For instance, it must not violate the public morals of the country nor must it contain names of religions and governing authorities.

Fortunately, there’s no need to navigate through the city’s numerous regulations alone. Instead, you can work with a trusted law office in Dubai.An experienced corporate lawyer can help you set up a business smoothly, draft the necessary documents, and review legal contracts.

Plus, the best corporate lawyers in Dubai have years of experience in tax laws, securities law, intellectual property rights, accounting, and licensing