Dubai Airport Freezone (DAFZA) is one of the UAE’s most sought-after business hubs, especially for businesses operating in aviation, logistics, and technology sectors. Located strategically next to Dubai International Airport, it offers unparalleled access to global markets and a favourable business environment.
For entrepreneurs and companies looking to establish their operations, it’s essential to understand the tax benefits. These incentives make DAFZA an attractive option for those considering company formation in Dubai Airport Freezone.
100% tax exemption on corporate income:
One of the most significant tax benefits offered by Dubai Airport Freezone is the complete exemption from corporate income tax. Companies established within DAFZA are not required to pay taxes on their earnings for a period of 50 years from the date of incorporation. This exemption is part of Dubai’s broader strategy to attract international businesses and nurture a thriving economic environment. This substantial tax relief is a powerful incentive for companies looking to increase profits without the burden of high taxes.
No personal income tax:
In addition to corporate income tax exemptions, Dubai Airport Freezone companies are also exempt from personal income taxes. This means that both employees and business owners can enjoy their full earnings without the government taking a percentage for income taxes. This is a significant advantage for expatriates and foreign entrepreneurs looking to keep their income intact while benefiting from a high-quality lifestyle in Dubai. The absence of personal income tax is a unique feature of Dubai’s tax system, making it an appealing destination for international professionals.
Customs duty exemptions:
Companies operating within Dubai Airport Freezone also benefit from customs duty exemptions on imports and exports. This is particularly beneficial for businesses involved in manufacturing, distribution, and trading. Since Dubai Airport Freezone serves as a logistics hub, companies can import raw materials and export finished goods without incurring additional customs duties. This cost-saving advantage helps businesses to remain competitive and reduce overhead costs associated with international trade.
Full ownership and repatriation of profits:
Unlike other jurisdictions in the UAE, Dubai Airport Freezone allows foreign investors to have 100% ownership of their businesses without requiring a local partner. This makes it an attractive choice for international entrepreneurs who wish to retain full control over their operations. Additionally, companies in DAFZA are permitted to repatriate 100% of their profits and capital back to their home country, offering significant flexibility and security for foreign investors.