Activities that receive preferential state treatment in the UAE
Find out which business activities are VAT-exempt, what you need to know about the UAE VAT system, and what benefits you will enjoy by starting your business in the region's largest financial hub.
Given that businesses operating in the local UAE market are highly profitable, the introduction of VAT has had a negligible impact on the business community. At the same time, many types of business in the Emirates are not affected at all and VAT is not applicable to a large number of foreign and local companies. Find out which areas of activity have received state support and an exemption from 5% VAT, and what unique opportunities are open to investors as well as the many advantages they can enjoy.
Business areas not affected by the introduction of VAT
Economic activity abroad
International trade and service business activities with foreign counterparties through a company that is incorporated and operating in the UAE
Investment activity
Investing own funds in securities on global markets, contributing to the authorized funds of foreign companies, purchasing and selling assets
Tax groups
Holdings created in the UAE to hide the ultimate beneficiary, and interconnected structures under a single management in the form of ‘tax groups’
Precious metals
Investment supplies of precious metals within the UAE and their import. This applies to gold, silver, platinum in the form of ingots with a purity of 99%
Export and re-export
Direct and indirect deliveries from the UAE to countries other than the Persian Gulf countries, including through the UAE’s Free Trade Zones
Real estate transactions
Purchase, sale and lease of apartments and houses in the UAE within 3 years from the date of their commissioning, and land plots without buildings
185 000dirham
375 000dirham
- Quarterly submission of reports to the FTA (Federal Tax Authority)
- Monthly submission - for a large number of bank account transactions
- Submission of tax reports and timely payment of VAT due
- Submission of tax invoices to clients upon the provision of the service
What benefits do taxpayers get in the UAE?
Onshore status
It is automatically assigned during tax registration and guarantees protection against deoffshorization trends
Tax Residency
All TRN number holders can apply for tax resident status and receive Information Exchange Protection (CRS)
Participation in tenders
Candidates from a jurisdiction that generates a high degree of trust in commercial and state competitions, entry to international bids
Prestige
High credibility in the eyes of foreign counterparties and financial institutions, support of UAE banks and credit institutions
Creating a cash and settlement center
Optimization of the operational activities of the entire international business with central calculation of taxes
International agreements
Covering mutual protection of investments and avoidance of double taxation, including the common customs space of GCC countries
Things to take into account when registering
TAX Group
TRN number
Grounds for registration
Bookkeeping
Understanding the business environment is the key to the success of your business in the UAE
When choosing a service company, you should look for a highly trustworthy organization that understands your business and knows how to use all the advantages of the jurisdiction to achieve your goals
SORP specialists will help you resolve all issues with organizing your business in the UAE
Preparing a business model
We will choose the most appropriate license and type of legal entity
Setting up a business
Fast incorporation through our long-standing close cooperation with licensing authorities
Tax registration with the FTA
Registering for VAT with the FTA and obtaining a TRN number to provide credibility for your business
Dubai business address
Cost-effective office rental in SORP business center for employees and licensing procedures
Opening bank accounts
Close cooperation with UAE banks, assistance in passing KYC procedures
Local partner or agent
Nominee service from SORP Investment LLC with waiver of rights in the Dubai Court
The UAE is an ideal base for your business
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International recognition
The country's high standing in the eyes of the international community allows companies incorporated here to enjoy the support of banks and financial institutions, international partners or counterparties. Foreign businesses receive state support in priority sectors on a par with local entrepreneurs.
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Financial freedom
The UAE government has declared support for free movement of capital and the complete absence of currency controls and restrictions on the size of bank transactions or payments in the national currency. The UAE is the most attractive settlement center for international transactions
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Tax advantages
Apart from the 5% VAT rate on a number of domestic goods and services, there are no major corporate or personal income taxes in the UAE. Any business owner can obtain the status of a tax resident and protect themselves from the automatic exchange of tax information
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The UAE tops the ratings
The United Arab Emirates ranks second in the world in terms of financial freedom, first in terms of ease of taxation, 16th among the easiest countries to do business, and 5th in terms of international trade. In the ranking of global competitiveness, the Emirates ranked 9th and 10th in the logistics and infrastructure development index among all countries of the world.
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Superb location
The UAE is an international trade hub and a recognized logistics center due to its ideal geographical location at the intersection of Europe, Africa and Asia. The highly developed transport network allows you to quickly receive and conveniently store, ship and transport goods within the country and abroad.
SORP Group will become your reliable long-term business partner in the UAE
A leading consulting group that provides a full range of services for the incorporation, support and management of businesses in the UAE and abroad. We have an impeccable reputation, extensive capabilities and a very solid asset base.