Introduction: United Arab Emirates
The UAE’s status as a growing knowledge hub is enhancing its attractiveness as a business destination that offers a multitude of possibilities. There are more than 40 free trade zones in UAE which offer business stability and 100% foreign ownership.

The taxation regime is extremely appealing with 0% Corporate Income Tax for most sectors and no Personal Income Tax or Social Security Contributions.

Business confidentiality and having no restrictions in establishing more than just one activity in the UAE makes it easy for international investors to set up their businesses in the UAE. Moreover, strong and rapidly expanding infrastructure plays a major role in attracting businesses to the UAE.

Dubai is fast becoming an important financial center that offers business support for foreign investors looking to invest in the region. With the World Expo being held in Dubai in 2020, a number of international companies and investors will be looking to explore opportunities in the UAE.

Having nearly 30 years of presence and experience in the region, Affiniax Partners are well placed to assist your clients with their requirements in the UAE.

Few aspects to consider when considering your move to Dubai:

• Skilled local and International workforce.
• The import and export sector benefits from a series of advantages and foreign companies are exempt from most tax and duties.
• Entrepreneurs in Dubai can easily connect with countries worldwide when having a business in the UAE.
• It is very easy to set up a branch or a subsidiary in Dubai.
• The incorporation process in Dubai is not subject to complex formalities and entrepreneurs can easily set up their business.
• The tax benefits are huge in Dubai, and entrepreneurs from abroad can enjoy tax exemptions like 0% corporate or income taxes.
• The positive trends of the real estate sector in Dubai attract different foreign businesses every year.
• A strong Currency with pegged AED to USD rate.
• Dubai is an important tourist destination which offers plenty of opportunities in this area.
• The UAE has already signed over 40 Double Tax Treaties with various jurisdictions and is in the process of agreeing on agreements with more jurisdictions, including the UK, Australia, and other EU countries.

The Double Tax Treaty between UAE and India was signed in 1989 and later amended through notifications of 1993, 2001, 2007 & 2013.

Double taxation is defined when similar taxes are imposed in two countries on the same taxpayer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border.

Public and Private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA).

Thanks to an intensive economic trade of more than 20 billion dollars between UAE and India, the two countries have signed an arrangement based on the promotion of mutual economic relations. Because of this tax convention, India and UAE have managed to avoid over-taxation of their legal entities and taken successful steps to prevent tax evasion.

The following incomes are protected by the double taxation treaties signed between the UAE and India:

1. Revenues from personal services.
2. Revenues derived from shipping and air transportation.
3. Interests, dividends, and royalties registered in both countries.
4. Incomes from the alienation of immovable or movable properties are protected by this DTT (under specific conditions).

Companies with permanent establishments like factories, offices, branches, workshops, or any other workplaces in Dubai are covered.

To determine the country of residence for a legal entity, the state takes into consideration whether the business has one of the following establishments on its territory:

• A place of Management;
• A Branch;
• An Office;
• A Mine;
• A Factory or Workshop.