Page 30 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE

The majority of the applicable customs
processes, suspension arrangements,
Other Taxes
exemptions, etc. are in accordance with
the relevant international agreements and
Customs Duties conventions because the UAE is a member
of both the World Trade Organization and
The UAE is a member of the World Trade
the World Customs Organization.
Organization (WTO), and is a contracting
party to the World Trade Organization’s
Most domestic goods from other GCC
revised Kyoto Convention, the primary
members, members of the Greater Arab Free
agreement in respect of global Customs
Trade Agreement, Singapore, nations of the
administration and procedures. At a regional
European Free Trade Association (Norway,
level, the UAE and other GCC countries are
Switzerland, Iceland, and Liechtenstein), and
unified through a common Customs law,
India are allowed to be imported duty-free
implementing procedures, and a common
into the UAE.
Customs tariff (although it is noted that
there may be differences in implementation
between member states). Municipal or Property Tax
The majority of Emirates levy a municipality
Customs duty is generally calculated on tax on properties based on the yearly rental
the cost, insurance and freight (CIF) value value. The tax is often the responsibility
of imported goods, when goods are ‘sold of the tenants. Both tenants and property
for export’. It is payable at the time of owners may occasionally be required to pay
importation. The Customs duty rates are different fees. For tenants in Dubai, the tax is
between 0% to 5% depending on the Tariff 5% of the rent; in Abu Dhabi, 3%; in Sharjah,
numbers and Harmonized Codes, but may 2%. The tenants pay a 10% municipal tax
vary certain products in the UAE. when renting a commercial property.
A registration fee may also be charged
Free zones are regions that are on UAE when ownership of land or other property is
territory but aren’t included in the customs transferred. A property transfer fee of usually
territory. As a result, imports into a free zone in 4% of the sale value of the property.
UAE are usually exempt from customs taxes.
Until the products that are brought into the Hotel Tax and Tourism Levies
GCC domestic market, customs duties are
Most Emirates charge a hotel tax of up to 7%
deferred. Since there are no export customs
on the cost of entertainment and services
taxes levied by the UAE, items leaving a
provided by hotels. Additionally, up to 7% in
free zone for a location outside of the GCC
tourist fees or taxes may be added to the
Customs Union shouldn’t be subject to
cost of some tourism and entertainment
customs taxes.
activities such as festivals and shows. Each
Emirate imposes and manages these fees
Companies operating in the UAE may import
goods into UAE free zones in as well as to
the onshore UAE, which is under the control
of the UAE Customs Authorities. As a result,
any transaction involving the purchase, use,
or disposal of goods must be reported to
the Customs Authorities in order to avoid
noncompliance fines and penalties.

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