In an economically prosperous country like the United Arab Emirates where the businesses are flourishing resulting in boosting of the economy, the government which has previously kept the emirates as a tax-free zone has now made amendments by introducing taxation policies for the operational functions of the country’s infrastructure and other developments. Thus, the booming economy of UAE has got a new segment for offices, that is, the online tax consultations authorities to safeguard the interests of the inhabitants as well as to educate them on the line of the taxation policy of the UAE Government.
What is Tax?
To define tax in simple terms would be a contribution made by the citizens of a country to the Government for the development and refinement of the public properties in the nation. This is done in the interests of the public and therefore, a little contribution in the years’ end can help the government to upkeep the economy of the country as well as its infrastructure.
Payments of taxes vary between individuals as well as between various firms. This calculation is done based on the income and the profits earned by the individuals and the firms annually. The Government charges a certain percentage on this amount so that a share of the earnings of the citizens can be put to effective use for the nation.
Besides such annual payments of taxes, the UAE Government has also introduced value-added tax (VAT) measures where every goods and service will be charged with an extra 5% of the total for the contribution to the Government fund. Although, at an initial stage, it is the company authorities who make the payments in total, however, here too it is the end consumers who are burdened with these charges. Since UAE holds a substantial stable economy globally, the inhabitants here do not find it difficult to pay the Government with taxes.
Types of Taxes in UAE
We have already acquainted you with a special type of tax that has to be paid annually as well as with the VAT services. Here we will classify these taxes and list them under heading along with other genres of tax payments. Taxes can be either Direct or Indirect Taxes.
- Direct Taxes are charged from companies dealing in oil and gas industries. Many branches of the foreign banks operating in the precincts of UAE are also charged with direct taxes.
- Indirect Taxes, on the other hand, include municipal taxes on facilities like hotels, entertainment, rentals of commercial as well as residential properties and VAT.
Benefits of Online Tax Consultation in UAE
Worried about the heavy payments of taxes in an economically booming country like UAE? Opt for online tax consultation services in Dubai that would likely lessen your burden and guide you through the entire procedure of the tax payments. The below-listed pointers are some of the benefits for taking aid of tax consultation services across UAE:
- Tax consultants are advisors who guide you through legal ways to limit or reduce the payments of taxes.
- They make the process of the tax return policy time-efficient.
- Sorts out the difficult calculations for you.
- Strategist various attempts to minimize the tax amount.
- Provides you with authentic and correct information in regards to the changes or updates in the taxation policy of UAE.
Note that, if you hold a business set-up in more than one nation then you have to pay taxes to both the Government. However, this could be avoided by the Double Tax Treaty. Many firms or businessmen holding setups operating in more than one nation can go for signing up a Double Tax Treaty which exempts the citizen from payments of taxes twice for a single working year. When a person signs up for a Double Tax Treaty, he or she can pay the taxes in either of the countries without violating the interests of the tax laws of the other nation.GCC Filings is your best solution when it comes to tax consultation, VAT registration, return filing, company incorporation and a lot more.