Dubai has a great number of free zones in order to provide investors interested in certain industries to benefit from tailored services. Dubai Media City and Dubai Internet City are two of the free zones dedicated to new technologies. Foreign investors interested in a wider variety of licenses will usually chose to open companies in Dubai Media City. Apart from the licensing variety, enterprisers may also benefit from several tax incentives in Dubai Media City.
Our company registration consultants in Dubai can assist foreign entrepreneurs who want to open companies in Dubai Media City.
Taxation in the UAE applies at federal and at emirate level. Apart from that, free zones have their own authorities which grant for tax incentives in order to attract foreign investments. This is also the case of the Dubai Media City which falls under the authority of the Dubai Technology and Media Free Zone (DTMFZ). If Dubai onshore companies are imposed a corporate tax at different rates applied based on the industry they operate in, this rule is not available in Dubai Media City. The DTMFZ offers the following tax incentives for companies operating here:
You can find out more about the taxation of companies in Dubai Media City from our Dubai company formation agents.
Considering Dubai Media City allows for full foreign ownership in a company, tax issues may arise in the foreign shareholders’ home countries which can levy certain taxes on the profits they repatriate. However, in order to ensure an advantageous tax environment for foreign investors, the UAE has signed numerous double taxation agreements which provide for tax exemptions, deductions or credits with countries like the United States, the United Kingdom, Austria and many others.
If you want to open a company in Dubai and need more information about taxation in the Emirate or in its free zones, please feel free to contact our company incorporation representatives.