Why Dubai is Tax-Free ?

1. Presented by –
Divyansh jain
1421002CIM, Delhi-Ncr 1

2. *Dubai, one of the seven regions which comprise the
United Arab Emirates (UAE), is well known for its
tax-free living.
*In the Arab world, it is considered haram or
forbidden to take unearned income, which taxes
are considered. There is also no property tax in
Dubai. There are, however, social security levies
that local citizens must pay and some corporate
taxes.
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3. *Individuals who reside in Dubai pay no tax on
income, property or capital gains.
*However; import duties , which are the taxes on
goods imported from outside country are charged.
*There is no sales tax, but there are high taxes on
alcohol and other products that are
considered haram.
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4. *There is no corporate income tax for most
businesses located in the UAE; however, Dubai
does tax the income from foreign banks and oil
companies.
*The region also contains a number of economic
free zones, which offer economic incentives to
encourage investment and commercial
development.
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5. *As of 2011, there were 18 free zones in the
region, including Dubai Aid and Humanitarian City,
Dubai Airport Free Zone, Dubai Internet City,
Dubai Silicon Oasis, Jebel Air Free Zone, and
Dubai Media City. The Jebel Ali Free Zone, created
in 1985, was the first of these economic zones.
*The government has since invested billions of
dollars into infrastructure and programs to coax
foreign investors to the region.
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6. * The United Arab Emirates was formed in 1971,
when the UAE gained independence from the
United Kingdom, and it has been an important
and wealthy nation ever since.
*Oil revenues allow the government to operate
without depending upon taxes, although the IMF
has encouraged the country to diversify its
revenue sources.
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7. CIM, Delhi-Ncr 7