Under the global tariff wave, what are the advantages of going to sea in Dubai?
2025-08-20
Author:joyce 
Source:Zhuoxin Enterprise 
Current online readers: 9 Under the sweeping wave of global tariffs, the international trade of enterprises is facing unprecedented challenges. The increase in tariff costs has compressed profit margins and hindered the globalization of enterprises. However, Dubai, with its unique advantages, is the ideal place for companies to find a breakthrough in this wave. More and more companies are looking to Dubai and choosing to register their companies in Dubai to seek new development opportunities and breakthroughs.
1. No personal income tax exemption on personal income: wages, investment income (dividends, interest, etc.), property rent, etc. are not taxed.
High Earners Paradise: Suitable for high net worth individuals, entrepreneurs, freelancers, etc. to reduce tax burden.
2. No corporate income tax (most industries) Free Zone corporate tax exemption: Companies registered in more than 30 free zones (such as DIFC, JAFZA) in Dubai can usually enjoy 15-50 years of corporate income tax exemption (subject to conditions).
Tax exemption for local enterprises: local enterprises in non-free zones generally have no corporate income tax unless they are involved in specific industries such as oil and finance (but a 9% tax rate may apply to large multinational enterprises from 2023).
3. Low tax rate and exemption policy Value Added Tax (VAT) is only 5%: it is levied at the federal level in the UAE, but most free zone transactions, exports, international services, etc. can be exempted.
Preferential tariff: the import tariff of most goods is 5%, and enterprises in the free zone can enjoy duty-free import.
No capital gains/inheritance tax: no tax on the sale and inheritance of assets.
4. Free Zone Special Policy 100 Foreign Ownership: Free Zone allows wholly foreign ownership without the need for local insurers.
Free repatriation of capital and profits: free movement of capital without foreign exchange controls.
Industry-specific benefits: For example, the Dubai International Financial Centre (DIFC) provides 0% income tax for financial enterprises.
New Corporate Income Tax Regulations in 5.2023 (Limited Impact) Global Lowest Tax Rate Response: The UAE imposes a 9% corporate income tax on multinational enterprises with an annual income of more than 3.75 billion dirhams (about US $1.02 billion), while ordinary small and medium-sized enterprises and free zone compliant enterprises are still exempt from tax.
Double taxation agreements: The UAE has signed agreements with 100 + countries to avoid double taxation.
Simplified tax process: the filing process is convenient, and corporate tax only requires annual filing. No foreign exchange control, free flow of funds Dubai no foreign exchange control, enterprises can freely remit funds in and out, to facilitate global business operations. For international trade, investment and financial enterprises, this policy has greatly improved the convenience of capital flow.
located at the intersection of Asia, Europe and Africa, Dubai is an important global trade and logistics hub. Its world-class ports (such as Jebel Ali Port) and airports (Dubai International Airport) provide enterprises with efficient global supply chain support, especially for cross-border e-commerce, international trade and logistics enterprises.
Friendly business environment, easy registration process
the process of registering a company in Dubai is efficient. Some free zones can complete the company establishment within 1-2 weeks, and the government provides "one-stop" services to reduce the administrative burden of enterprises. In addition, Dubai's rule of law environment is stable and intellectual property protection is perfect, providing a safe business environment for enterprises.
How to choose the type of company registration in Dubai
in Dubai, there are three main types of company registration: free zone companies, offshore companies and local companies. The following are their characteristics and applications:
free Zone Company
features: foreign capital can be controlled by 100 without local sponsors or partners; usually enjoy 15 to 50 years of tax exemption policy, including corporate income tax, personal income tax, stamp duty and property tax, etc.; exempt from import and export taxes, allowing capital and profits to be remitted freely, no foreign exchange control; strong confidentiality, no need to disclose shareholder information.
Applicable situation: suitable for enterprises engaged in international trade, logistics, science and technology, media, consulting, financial services and other industries, as well as enterprises that want to carry out business on a global scale and enjoy preferential tax and convenient policies.
Offshore Company
features: 100% foreign holding, business scope is limited to outside the UAE; enjoy low tax rate or tax exemption policy, do not need to set up a physical office or employ employees, low operating costs; highly confidential, do not need to disclose shareholder and director information; can be used to hold assets or investment equity, suitable for corporate structure design and global tax planning.
Applicable situation: suitable for enterprises that do not actually operate in Dubai, but want to use Dubai's preferential tax policies for tax planning and asset management, as well as enterprises engaged in international holding business, intellectual property ownership, shipping, online advertising, logistics, professional consulting services and other industries.
Local Company
features: Free to operate in Dubai and the entire UAE, eligible to participate in government project bidding, can sell and service directly in the UAE, without going through agents or distributors, and has a wider business scope; depending on the industry, it may be necessary to cooperate with local sponsors, who usually hold at least 51% of the company's shares.
Applicable situation: suitable for enterprises that want to deeply cultivate the local market in Dubai, directly contact local customers, participate in government projects, and engage in construction, medical, retail, education, health, legal and other professional services.
On the whole, Dubai has become a popular destination for global enterprises to expand overseas markets with many advantages. Whether it is to reduce tax burden, optimize global business layout, or enter the Middle East, Africa and Europe market, Dubai can provide enterprises with a very competitive business environment.
Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!
Zhuoxin Consulting relies on its Chinese service network and Dubai executive team to provide professional one-stop business services without communication barriers for Chinese companies to enter the Middle East market. Its business covers company establishment and maintenance, accounting and taxation, bank account opening, PRO services and business services.
Zhuoxin Consulting has high-quality business resources and maintains close cooperation with many free zones, bankers and tax departments in the UAE to escort your expansion in the Middle East market.
