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Is Dubai Really Tax-Free?

Dubai is part of the Middle Eastern region. It is part of the United Arab Emirates. Though it is small and has a population of just one million, it is very wealthy and enjoys a flourishing tourism industry.
People go to Dubai, which is essentially a desert town, because of the fantastic architecture, the exotic culture, and features like the world’s largest artificial ice skating rink or the world’s tallest building. Dubai also offers a lot of travel incentives.

The government has also done much to make Dubai the attractive choice for businesses. One of the common come-ons are the low tax rates. In fact many people thinkt hat Dubai is tax free. This is not completely true but the country does have economi free zones which offer excellent incentives and business support units such as the Internet and Media Cities, the International Financial Centre, Maritime City, the Airport Free Zone, and the Jebel Ali Free Zone.

For example in the Jebel Ali Free Zone the companies that choose to operate there have a “total pass” on both personal and company taxes for 15 years! Companies can also file for additional tax exemptions at the end of the 15 year grace period. Companies are also spared from import and export taxes. Dubai Internet and Media cities offer similar incentives to companies who are from those industries. They are given a 50 year tax exemption.

These incentives are an excellent way of attracting companies to hold their offshore operations in Dubai.

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