Why Choose Dubai as Your Next Destination

Dubai has emerged as a global hotspot and an ideal destination for individuals and businesses looking for new opportunities. With its impressive rankings, thriving economy, and exceptional lifestyle, now is the perfect time to consider relocating to Dubai. Explore the reasons why Dubai stands out and why it should be at the top of your list.

 

World-Class City:

Dubai has recently been ranked as the fifth best city globally, surpassing renowned cities like Singapore, Tokyo, and Los Angeles. This recognition is a testament to Dubai’s commitment to safety, pleasant weather, favorable immigration policies, cultural diversity, and iconic landmarks. The city has established itself as a premier destination, offering a blend of luxury, convenience, and innovation.

 

Attracting Wealthy Individuals:

Dubai continues to attract the world’s wealthiest individuals, including billionaires, high-profile investors, and influential families. The city’s allure lies in its sophisticated environment and opportunities for wealth creation. Many prominent figures from various countries, including the UK, Africa, India, and Europe, have chosen Dubai as their new home. The favorable tax environment, exceptional infrastructure, productivity, and remote working facilities make Dubai an attractive jurisdiction for global professionals.

 

Thriving Business Hub:

Dubai’s real estate market and business landscape have experienced substantial growth due to this influx of talent and investment. Recent changes in foreign ownership regulations have opened doors for foreign entrepreneurs to establish 100% ownership of mainland companies, allowing for international trade opportunities. Moreover, the introduction of the 10-year Golden Visa program in 2019 has made relocating to Dubai even more accessible for investors, business owners, and professionals. The Golden Visa also provides the advantage of unrestricted entry to the UAE, even during challenging times.

 

Enhanced Economic Appeal:

The UAE has implemented measures to enhance its economic attractiveness to foreign investors and skilled professionals. The introduction of a new working week, aligning with global markets by adopting a Saturday-Sunday weekend, promotes seamless international trade integration. The UAE’s proactive approach in adapting to changing business dynamics strengthens its position as a global business hub.

 

Expo 2020 and Vibrant Tourism:

Dubai is currently hosting Expo 2020, attracting tourists and entrepreneurs from more than 190 nations. This global event has further accelerated Dubai’s pace of growth and offers unparalleled business and networking opportunities. The city has never been more bustling, and its dynamic environment promises a future filled with exciting possibilities.

 

Disclaimer: The information provided in this article is for informational purposes only and does not constitute tax, legal, or investment advice. As a relocation services provider, IRIS GROUP offers comprehensive support to individuals and families seeking to make Dubai their new home. Reach out to IRIS GROUP to learn more about our services. Please note that some information is based on reputable sources, including Resonance Consultancy’s World’s Best Cities Report.

UAE Federal Corporate Tax: A Comprehensive Guide

Effective from 1 June 2023, the UAE Ministry of Finance has introduced the UAE Federal Corporate Tax (CT), bringing forth significant changes in the tax landscape for businesses operating in the Emirates. As part of the UAE’s commitment to combat tax avoidance and evasion on a global scale, this new tax regime aims to enhance transparency and promote fair taxation. The Federal Tax Authority will be responsible for administering and ensuring compliance with the CT regulations.

Aligned with internationally accepted accounting standards, CT will be levied on taxable company profits reported in financial statements. This development follows the successful implementation of the Value Added Tax (VAT) regime in 2018, further establishing the UAE’s dedication to a robust and equitable tax system.

 

Key Highlights of the UAE Federal Corporate Tax:

Statutory Tax Rates:

Net profits exceeding AED 375,000 will be subject to a standard statutory tax rate of 9 percent.

For businesses with net profits of AED 375,000 or less, a 0 percent tax rate is applicable. This provision aims to alleviate administrative burdens for small businesses and startups, fostering growth and entrepreneurial spirit.

 

Exemptions:

Personal income from employment, real estate, investments, and other non-UAE trade or business-related income earned by individuals will be exempt from CT.

Dividends, capital gains, and investment returns earned by foreign investors will also be exempt from UAE CT.

 

Free Zone Benefits:

Companies operating in Free Zones will continue to enjoy a tax-free environment, provided they solely conduct business within the Free Zone and comply with regulatory requirements.

Free Zone businesses, however, are required to register and file a CT return, ensuring compliance with tax regulations.

 

Implementation Timeline:

Most businesses following the calendar financial year (1 January – 31 December) will be subject to UAE CT starting from 1 January 2024.

 

How IRIS GROUP Can Support Your Business:

At IRIS GROUP, we understand the complexities and implications of the UAE Federal Corporate Tax. Our dedicated team is here to assist you in navigating the changes and providing expert guidance tailored to your business needs. As the legal framework and regulations evolve, we offer comprehensive advice and analysis to help you assess the impact of CT on your operations.

Our team comprises experienced tax and accounting specialists who can aid in the implementation of your company’s CT filings, including the preparation and submission of applications. Additionally, we provide ongoing support and advisory services to ensure your compliance with tax and accounting obligations.

 

Stay Informed and Stay Ahead:

As the UAE’s tax landscape continues to evolve, it is crucial to stay updated with the latest developments. At IRIS GROUP, we are committed to keeping you informed about the ever-changing tax regulations and their implications for your business. We encourage you to reach out to our team for personalized advice and guidance on UAE Federal Corporate Tax or any other tax-related matters.

Exploring the Routes to the 10-Year Golden Visa

The UAE offers multiple routes for acquiring the 10-year Golden Visa, each tailored to specific qualifications and achievements. Let us walk you through the most common routes undertaken:

1.Investor Route: Aspiring individuals can deposit a minimum of AED 2,000,000 into a local UAE bank account as a fixed deposit for two years. Alternatively, purchasing a property with a value of no less than AED 2,000,000 can also make you eligible for this route.

2.Entrepreneurship: If you are an entrepreneur, owning or being a partner in a start-up registered under the small and medium enterprises (SME) category in the UAE is a pathway to the Golden Visa. Your start-up should generate an annual revenue of not less than AED 1,000,000. Moreover, if you have previously sold a start-up business for no less than AED 7,000,000, you may also qualify.

3.Skilled Workers: Highly skilled professionals in industries such as science, engineering, medicine, or law can pursue the Golden Visa through this route. You must have a minimum of 5 years of experience in your field and receive a monthly salary of at least AED 30,000.

4.Individuals with Outstanding Talent: If you possess exceptional skills and talents in fields like medicine, research, blogging, or influencing, you may qualify for the Golden Visa based on your individual profile. The list of eligible professions is diverse and not limited to specific categories. Your eligibility will be evaluated on the merits of your profile during the immigration approval process.

Discover the extraordinary advantages that come with the prestigious UAE 10-year Golden Visa. As a leading provider of immigration services, IRIS GROUP is here to help you explore these exclusive benefits and assist you in securing your future in the United Arab Emirates.

 

Seamless Re-entry and Peace of Mind

One of the key advantages of the 10-year Golden Visa is the peace of mind it offers. In the unfortunate event that you find yourself stranded abroad, whether due to COVID-related circumstances or any other reason, re-entry to the UAE becomes a straightforward process. Golden Visa holders are granted the same privileges as UAE passport holders, ensuring a smooth return to the country you call home.

 

Renewal Made Effortless

The Golden Visa is automatically renewed every 10 years, providing a sense of security and stability. Unlike visas tied to employment contracts, business ownership, or property, the Golden Visa stands alone as a standalone visa. This means you can enjoy the benefits of long-term residency without the need to constantly renew or worry about the status of your visa.

 

Extend the Golden Opportunity to Your Family

Under the primary applicant’s Golden Visa, you have the remarkable privilege of sponsoring your spouse, children (with no age limit), and parents. This opens up a world of possibilities for your family members to experience the remarkable benefits and opportunities that the UAE has to offer. Even in the unfortunate event of the Golden Visa holder’s passing, family members can continue to reside in the UAE until the end of their permit duration, providing them with invaluable support during challenging times.

 

Embrace the Future: Renewing Your 10-Year Visa

Effortless Renewal Process

Renewing your Golden Visa is a straightforward and hassle-free process. As the applicant, all you need to do is complete a medical examination and pay the relevant government fees. Once these steps are completed, a new 10-year visa will be issued, granting you continued peace of mind and security for the next decade.

 

Extend the Golden Opportunity to Your Family

As the primary Golden Visa holder, you have the remarkable privilege of sponsoring your spouse (husband or wife), unmarried children, and parents. This allows your family members to join you in experiencing the exceptional benefits of long-term residency in the UAE. We are here to assist you in navigating the sponsorship process, ensuring that your loved ones can share in this incredible opportunity.

 

Flexibility for Global Residents

If your main residence is outside the UAE, you are not bound by strict entry requirements that govern regular residence visas. The Golden Visa allows you the freedom to visit the UAE as and when you require, without the need for frequent visits or a specific number of entries per year. Embrace the flexibility that comes with the Golden Visa, empowering you to maintain your global lifestyle while enjoying the privileges of long-term residency in the UAE.

 

Streamlined Visa Status

Upon obtaining the Golden Visa, you no longer need to maintain any existing visas, including your current 3-year visa. The Golden Visa serves as a comprehensive and all-encompassing residency solution, eliminating the need for multiple visa types. Embrace the simplicity and convenience that the Golden Visa offers, streamlining your visa status and ensuring a smooth transition.

 

Introducing the 5-Year Green Visa: New Opportunities Await

In addition to the 10-year Golden Visa, the UAE also offers the 5-year Green Visa, opening doors to new possibilities for eligible individuals. At IRIS GROUP, we specialize in assisting clients with various visa options, including the Green Visa. Here are the key routes and requirements for obtaining the 5-year visa:

 

Skilled Employees: Individuals with specific skills and qualifications can apply for the Green Visa. This includes those with current employment contracts aligned with the Ministry of Human Resources and Emiratisation’s occupational levels. The minimum educational requirement is a bachelor’s degree or equivalent, and the salary should not be less than AED 15,000 per month.

 

Freelancers and Self-Employed Individuals: If you are a freelancer or self-employed, the Green Visa provides an excellent opportunity for long-term residency in the UAE. To be eligible, you should have a consistent annual income from self-employment for the previous two years, with a minimum of AED 360,000 per year. This should be supported by a Bachelor’s Degree or Specialized Diploma.

 

Investors: The Green Visa also caters to investors who establish or participate in commercial activities within the UAE. This visa replaces the previous two-year residence permit, providing a five-year residency option for eligible investors.

 

Unlocking the Benefits of the 5-Year Visa

Discover the exceptional advantages that come with the UAE’s 5-year visa, designed to provide you with greater flexibility and extended grace periods. At IRIS GROUP, we are dedicated to delivering seamless visa solutions and ensuring a stress-free application process for our clients. Explore the unique benefits of the 5-year visa and let us guide you towards a brighter future.

Extended Grace Periods for Added Flexibility

One of the key advantages of the 5-year visa is the longer grace periods it offers. With this visa, you can enjoy a flexible grace period of up to six months to stay in the country after your residence permit is cancelled or has expired. This gives you ample time to make necessary arrangements and transitions without unnecessary stress or complications. Embrace the freedom and peace of mind that comes with the extended grace periods provided by the 5-year visa.

Value-Added Services for a Smooth Process

At IRIS GROUP, we take pride in our track record of successfully processing eligible applications for the UAE’s visa programs. Our expert team is well-versed in the intricacies of the application process and is dedicated to providing efficient and streamlined services. By entrusting us with your visa application, you can focus on your priorities while we handle the complexities and ensure a smooth process from obtaining prior approval to receiving your new visa. Experience our unrivaled service in the market, characterized by clear communication, efficient processing, and overcoming any challenges that may arise during the application journey.

 

Stay Informed and Updated

As rules and regulations pertaining to visas are constantly evolving, we understand the importance of staying informed and up to date. At IRIS GROUP, we make it our mission to keep you well-informed about any changes or updates in visa policies. We continuously monitor the landscape to provide you with accurate and timely information, ensuring that you have the knowledge necessary to make informed decisions regarding your visa status.

 

Contact Us for Expert Assistance

Should you have any questions regarding the Golden Visa, the Green Visa, or any other visa-related inquiries, we are here to help. Our dedicated team of experts is ready to provide personalized guidance and address any concerns you may have.

Let us be your trusted partner in navigating the world of visas, unlocking opportunities, and building a brighter future.

Understanding UAE Federal Corporate Tax: A Comprehensive Guide

In response to the recent announcement regarding the introduction of the UAE Federal Corporate Tax (CT), the UAE Ministry of Finance (MoF) has issued a consultation document outlining the proposed CT regime. The consultation period, which ended on 19 May 2022, gathered valuable feedback, with the final legislation expected to be announced shortly.

Impact of UAE CT on Businesses and Individuals

The UAE CT is designed to tax the income of legal entities (companies) and, in certain cases, natural persons (individuals). For individuals, the CT will apply to income earned under a commercial license, such as a sole establishment. However, there are various sources of income that are exempt from UAE CT, including salary and employment income, rental receipts from UAE real estate, dividends, capital gains, and interest from bank deposits or savings.

 

Exemptions from UAE CT

Several entities are exempt from UAE CT, including the UAE Government, Emirate Governments, their departments, authorities, and other public institutions. Wholly Government-owned UAE companies engaged in sovereign or mandated activities, businesses involved in the extraction and exploitation of UAE natural resources, listed charities, public benefit organizations, public and regulated private social security and retirement pension funds, as well as certain investment funds, regulated investment funds, and Real Estate Investment Trusts, may also qualify for exemption (subject to meeting specific requirements).

 

Impact on Free Zone Companies

Contrary to popular belief, businesses established in Free Zones are not exempt from UAE CT. Free Zone companies will be required to register and file a CT return. The exact impact on Free Zone businesses is still unclear, but income earned by Free Zone companies may be subject to a 0% tax rate or exempt based on certain conditions and the source of income.

 

Exempt Income Categories

Under specific conditions, the following types of income will be exempt from UAE CT: dividend income earned by UAE companies, capital gains, and income received by individuals and exempt entities as mentioned above. Similar to other jurisdictions, a “participation exemption” for dividend income and capital gains is expected. This exemption is likely to involve holding a specific shareholding of the subsidiary company and the subsidiary being subject to CT or an equivalent tax for foreign shareholdings.

 

Calculation of UAE CT

UAE CT will be calculated based on the taxable profits reported in a business’s financial statements, with minimal exceptions and adjustments. Accurate and comprehensive financial statements are crucial, and audits may be required as per company law, including all Free Zone entities.

 

CT Rates and Effective Date

The CT rates for businesses in the UAE are as follows: 0% for taxable profits not exceeding AED 375,000, 9% for taxable profits exceeding AED 375,000, and a different tax rate, likely 15% (yet to be specified), for large multinationals.

The UAE CT regime will take effect for financial years starting on or after 1 June 2023. Businesses will be required to register online and file their tax returns electronically. Non-compliance may lead to fines, penalties, and other consequences in certain circumstances.

 

What Should You Do Now?

At IRIS GROUP, we recommend a comprehensive 3-stage approach to dealing with UAE CT:

Stage 1: UAE CT Impact Assessment – Understand the impact of UAE CT on your business and receive expert recommendations to ensure compliance and optimal positioning.

Stage 2: Implementation Support – Receive assistance in implementing the necessary measures, including transfer pricing considerations, entity structure adjustments, and compliance with the new Corporate Tax requirements.

Stage 3: Ongoing Support and Compliance – Benefit from continuous support and guidance to maintain compliance with UAE CT regulations and stay up-to-date with any changes that may arise.

 

Please contact us using the information, if you would like to sign up for an impact assessment or obtain further information.

UAE 10-Year Golden Visa for Real Estate Investors

In September 2022, the Federal Authority for Identity, Citizenship, Customs, and Ports Security (ICA) of the UAE introduced new regulations that allow certain real estate owners to obtain a 10-year Golden Visa. This initiative presents an exciting opportunity for eligible individuals seeking long-term residency in the UAE.

To qualify for a UAE Golden Visa as a real estate investor, you must meet one of the following criteria:

  • Invest in a property valued at AED two million or more, as specified on the title deed.
  • Acquire a property using a loan from select local banks.
  • Purchase one or more off-plan properties with a minimum value of AED two million from approved local real estate companies.

 

These regulations enable both existing and new property owners to apply for a UAE Golden Visa, providing them with numerous advantages and privileges:

  • Renewable 10-year visa upon meeting the requirements.
  • No requirement for a sponsor or employer.
  • Extended stays outside the UAE do not invalidate the Golden Visa.
  • Ability to sponsor your spouse and dependents, regardless of age as long as they are unmarried.
  • In the unfortunate event of the main applicant’s death, family members can continue to use the Golden Visa until its expiry.
  • Simplified conversion of your home country’s driving license to a UAE driving license without a full test.
  • Eligibility for the Esaad Card, offering extensive benefits and discounts across various sectors such as healthcare, education, hospitality, entertainment, real estate, and restaurants. Cardholders can enjoy exclusive offers and discounts at 7,237 brands and businesses within the UAE and across 92 countries worldwide.

 

At IRIS GROUP, we possess a proven track record of successfully facilitating eligible applications for the UAE Golden Visa. Our dedicated team aims to streamline the approval process, alleviating any potential stress or delays. We handle tasks such as arranging appointments for medicals and biometrics, liaising with the relevant departments to expedite the application, and managing unforeseen complications.

Should you have any inquiries or wish to begin your Golden Visa application, please do not hesitate to contact us using the provided details below.

UK Mini-Budget Highlights

Recently, Chancellor Kwasi Kwarteng unveiled a comprehensive ‘mini-budget’ in the UK, encompassing significant cuts to income tax, national insurance, corporate tax, stamp duty land tax, and more.

Here are the key announcements:

  • The basic rate of income tax will witness a 1% reduction to 19% starting from April 2023.
  • The 45% income tax rate will be eliminated, resulting in a top rate of income tax at 40% from April 2023.
  • The threshold at which individuals begin paying stamp duty land tax will be doubled, increasing from £125,000 to £250,000. For first-time buyers, the threshold will be set at £425,000.
  • The planned hike in corporation tax rates from 19% to 25% has been discarded.
  • The 1.25% increase in National Insurance, originally slated for implementation on November 6, 2022, will be reversed.
  • Over 40 new investment zones will be introduced in England, featuring relaxed planning regulations and reduced business taxes.
  • VAT-free shopping privileges will be extended to overseas visitors.

In addition to these measures, various duty cuts, the removal of the cap on bankers’ bonuses, and other proposed changes are on the horizon.

Should you require further information regarding any of the aforementioned updates, please feel free to reach out to your designated point of contact or utilize the contact details provided below.

Reversal of Mini-Budget Measures

On September 23, 2022, the former Chancellor, Kwasi Kwarteng, unveiled a mini-budget that outlined several tax cuts in the UK. To get a concise overview of the announced changes, we invite you to read our article on the subject.

However, these announcements had an unexpected negative impact on the UK economy, leading to a significant decline in the value of the British Pound against the dollar.

Due to public outcry, Kwarteng made a U-turn by reversing the proposed income tax additional rate cut. Subsequently, he was relieved of his position by Prime Minister Liz Truss, and Jeremy Hunt was appointed as the new Chancellor.

 

On October 17, 2022, the newly appointed Chancellor overturned most of the measures introduced in the previous mini-budget. Here’s a summary of the revised proposals:

The Corporation Tax rate will still increase from 19% to 25% effective from April 1, 2023.

The reduction of the basic rate of income tax from 20% to 19% will no longer take place.

The plan to implement VAT-free shopping for overseas visitors has been discarded.

As a result, only two of the original tax-related policies from the mini-budget remain unchanged:

The threshold at which house-buyers begin paying stamp duty land tax will be doubled, from £125,000 to £250,000 (£425,000 for first-time buyers).

The proposed 1.25% increase in National Insurance, initially scheduled to take effect from November 6, 2022, has been reversed.

The market has responded positively to these announcements. However, it is uncertain whether further adjustments will be made in the future.

If you would like to understand how these changes might impact your UK tax affairs or discuss any other UK tax matters, we encourage you to reach out to us.

Our team is well-equipped to provide you with personalized insights and guidance.

Understanding UAE Tax Residency

In a significant development, the UAE Federal Tax Authority (FTA) introduced a new resolution, “Cabinet Decision No. 85 of 2022,” on September 2, 2022. This resolution aims to determine the tax residency status of individuals and corporate entities in the UAE. The provisions outlined in this resolution will come into effect on March 1, 2023.

The new law establishes clear conditions that must be met for both natural and legal persons to be considered tax residents in the UAE. It also outlines the process through which individuals can achieve UAE tax residency. Let’s explore these conditions and procedures in detail:

Tax Residency for Natural Persons:

A natural person will be recognized as a Tax Resident of the UAE if they meet any of the following conditions:

Their usual or primary place of residence, as well as their personal and financial interests, are in the UAE.

They have physically stayed in the UAE for 183 days or more within a 12-month period.

They have physically stayed in the UAE for 90 days or more within a 12-month period if:

  1. They possess a legal right to reside in the UAE.
  2. They maintain a permanent place of residence in the UAE.
  3. They conduct business or are employed in the UAE.

Tax Residency for Legal Persons:

A legal person will be considered a Tax Resident of the UAE if:

It is incorporated or formed in the UAE.

It is deemed a tax resident under any other relevant legislation, such as the new UAE CT Law.

 

Tax Residency Certificate (TRC):

Once an individual fulfills the aforementioned conditions and is deemed a UAE tax resident, they can apply for a Tax Residency Certificate (TRC) from the FTA. The application process involves submitting an application to the FTA, which will review the submission and issue the TRC if all requirements are satisfied.

Previously, the UAE followed a strict criterion of 183 days of physical presence for individuals. However, the new law allows individuals with a permanent place of residence and/or business in the UAE to obtain tax residency by spending only 90 days in the country.

Similarly, tax residency for companies was previously based on the entity being incorporated for a minimum period of one year and the provision of specific documentary evidence, including a tax residency certificate.

Once individuals and entities acquire UAE tax residency, they gain access to the network of Double Tax Treaties established by the UAE with other countries. These treaties are instrumental in mitigating or eliminating instances of double taxation.

 

How Can We Assist You?

At IRIS GROUP, we specialize in providing comprehensive support for individuals and businesses navigating UAE tax residency requirements. Here’s how we can help:

We can assess your eligibility for a Tax Residency Certificate (TRC) based on the new rules.

We offer expert assistance with the TRC application process, ensuring all necessary documents are properly attested.

Our team can provide valuable insights into the interaction of Double Tax Treaties, helping you make informed decisions.

 

For more information and personalized assistance regarding UAE tax residency, please reach out to us using the contact details provided below.