The Dubai Biotechnology & Research Park, or simply the Dubai Science Park, is the only one devoted to those interested in running the pharmaceutical, biotechnology and medical technology sectors.
Setting up a business in Dubai Biotechnology & Research Park has many advantages, including a quick business registration process, specialized licensing processes in line with the company’s profile and many tax advantages.
When it comes to business taxation in Dubai Biotechnology & Research Park, these must comply with a few laws, some of which relate to the implementation of VAT.
What are the taxes to be paid by companies in this free zone?
No corporate tax will be paid by businesses working here. A 20 percent tax on their corporate income will only be applied to branches of foreign businesses formed in this free zone.
Taxation of foreign shareholders in companies set up in Dubai Science Park
One of Dubai Biotechnology & Research Park’s greatest benefits is that it enables complete foreign ownership. Even if foreign investors, natural persons or businesses in Dubai Biotechnology & Research Park are not going to face any tax problems, they need to consider the following:
- They can be taxed in their home countries on the income generated in the Dubai Biotechnology & Research Park;
- If their home country has signed a double tax treaty with the UAE, certain tax exemptions are available;
- Under the same double tax treaties, if no exemptions are available, deductions could be obtained by the foreign owner of the company;
- The operations completed by companies owned by foreign investors are free of taxes in Dubai Biotechnology & Research Park.
Tax compliance for companies in Dubai Biotechnology & Research Park
Even if they will not be imposed with the corporate tax, companies in Dubai Biotechnology & Research Park must register with the tax authorities and file tax returns which, in the case of foreign shareholders, must also be filed with the tax authorities in their home countries with the purpose of being granted tax deductions or reductions.
Also, companies in Dubai Biotechnology & Research Park must also register for VAT and file returns which demonstrate the collection and payment of this tax. The VAT returns in Dubai must be filed on a monthly or quarterly basis, depending on the annual income of the company.
Advantages of taxes in Dubai Biotechnology & Research Park
Those who set up companies in Dubai Biotechnology & Research Park will benefit from the following tax advantages:
- No corporate tax;
- Free repatriation of profits;
- No taxes on the operations completed here;
- Various customs exemptions on import and export activities.