Sunday, 14 January 2018

VAT & Offshore Companies in UAE

        As per Federal Decree Law No. (8) of 2017,  ( Value Added Tax) is being implemented in the UAE from January 1, 2018 at a standard rate of 5% on all “products and services”. All companies in the UAE, with an annual turnover of AED 375,000 or more shall mandatorily register with Federal Tax Authority (FTA) and obtain Tax Registration Number (TRN).
There is a confusion whether the International Business Companies (IBC) popularly known as Offshore Companies in UAE, are within the purview of VAT law in the UAE. 
    As everyone knows, there are three offshore jurisdictions in the UAE – 1) Ajman Offshore 2) RAKICC 3) JAFZA Offshore. “Offshore companies ", as the name indicates,  are legally considered to be outside the country. Offshore companies are non resident companies, with no eligibility to do any business within the country of incorporation. They are not allowed to establish their own office, but their legal Office will be the office of Registered Agent through which company is incorporated. Offshore companies cannot be registered with Chamber of Commerce and they cannot obtain Import Export Code. 
Being a Non- resident company and not doing business within UAE, an Offshore company will not come under the purview of VAT in UAE.  Its also pertinent to note that VAT is payable on the fee charged by Registered Agent for incorporation and annual maintenance of company. 


4 comments:

  1. Nice post. I love to read an interesting blog that has the knowledge to impart. Keep on sharing the blog like this. VAT Free Zones in UAE

    ReplyDelete
  2. Greatsolution is the service provider of legal Commercial Documents with their Experienced team. It's the one of the TAN Registration Company in Delhi. Here You Can Get everything at one roof regarding Commercial Legal Services. We are providing the TAN registration service for many years. You Can contact at 96547-28811 for more enquiry.

    TAN Registration Company In Delhi

    ReplyDelete
  3. Thanks! Actually as
    professional nursing essay writer its just a great initiative by Gov of United Arab Emirates as if I am to launch my business office to target middle east audience.

    ReplyDelete
  4. Those guidelines additionally worked to become a good way to recognize that other people online have the identical fervor like mine to grasp great deal more around this condition.outsource accounting in dubai

    ReplyDelete