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The UAE has long been a hub for offshore companies, offering 100% foreign ownership, low operating costs, and offshore company tax benefits. However, recent updates under the UAE Corporate Tax Law and VAT regulations mean that offshore entities—whether in Ras Al Khaimah, Jebel Ali, or abroad with UAE presence—must understand their tax obligations clearly.
AEY Accounting LLC helps businesses handle offshore corporate tax registration, offshore VAT tax filing, and ensure compliance across Dubai, Abu Dhabi, and Sharjah—without compromising the offshore benefits that make the UAE an attractive jurisdiction.
This is one of the most commonly asked questions:
Is offshore income taxable in UAE?
The answer depends on economic substance, source of income, and business activity. Here’s how it breaks down:
| Criteria | Tax Implication |
|---|---|
| Offshore company has no UAE operations | Not taxed unless it has UAE-sourced income |
| Offshore company with UAE clients | May be taxable under UAE corporate tax rules |
| Offshore business with UAE PE or office | Corporate tax applies (9% on taxable income) |
| Passive foreign income (e.g., dividends) | May be exempt but must be disclosed |
| Note: If your offshore company trades, contracts, or owns property in the UAE, you may be required to file for offshore corporation tax and VAT, even without a physical office. | |
The UAE’s corporate tax law, effective from June 2023, includes provisions for offshore businesses that:
In such cases, offshore corporate tax registration with the FTA is required, and the entity must file tax returns annually.
AEY assists with every step, ensuring error-free compliance.
Just like corporate tax, offshore VAT tax filing applies when:
FTA guidelines treat offshore companies engaging in UAE activities as liable for VAT unless proven otherwise.
AEY ensures your offshore business stays compliant with all UAE VAT and FTA expectations—even if you operate from overseas.
Despite tighter controls, offshore businesses still enjoy numerous benefits in the UAE:
AEY ensures you enjoy these offshore company tax benefits while staying fully compliant.
| Entity Type | UAE Income? | VAT Required? | CT Required? | AEY Recommendation |
|---|---|---|---|---|
| BVI Company owning UAE property | Yes | Yes | Yes | Full registration + audit support |
| Seychelles Co. invoicing abroad | No | No | No | Monitoring only |
| RAKEZ Free Zone entity exporting | Yes | Yes | Depends on revenue | VAT registration + quarterly filing |
| DIFC holding company | Yes | No (exempt) | Yes | Corporate tax registration only |
| Service | Includes | Starting From (AED) |
|---|---|---|
| Offshore Corporate Tax Registration | EmaraTax setup, TRN, documentation | 1,000 |
| Offshore VAT Filing | Form 201 prep, ledger review, return submission | 1,500 / quarter |
| Annual Tax Filing & Compliance | CT return + VAT + accounting report | 4,000+ / year |
| Economic Substance Advisory & Restructuring | Substance assessment, restructuring, CT strategy | Custom Quote |
| Packages tailored for DIFC, RAK ICC, BVI, Seychelles, Cayman, and UAE Free Zones. | ||
| AEY Strength | Your Benefit |
|---|---|
| Cross-border tax expertise | Compliance in both offshore and UAE jurisdictions |
| Regulatory clarity | Clear breakdown of what’s taxable and what isn’t |
| Seamless registration support | From VAT to offshore corporate tax registration |
| FTA-compliant documentation | Avoid penalties through correct invoicing and filing |
| Free zone & offshore insights | RAK ICC, JAFZA Offshore, DIFC, and ADGM experience |
Avoid confusion. Stay compliant. Protect your tax advantages.
AEY Accounting LLC supports international entrepreneurs, family offices, and offshore businesses with end-to-end tax solutions—ensuring clarity, compliance, and confidence.
Streamline your annual accounting form submissions.
Whatever your question is, our team will lead you to the right direction.
+971 56 413 4070
info@aey.ae
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Only if it is UAE-sourced or if your offshore company has a UAE presence. AEY will assess your structure and guide compliance.
Yes, if they exceed AED 375,000 in UAE taxable turnover or operate through a UAE logistics or service provider.
9% on UAE-sourced taxable income. No tax applies if your business has no economic presence or income from UAE.
Yes. Many passive income types (e.g., dividends, royalties, capital gains) may qualify under offshore company tax benefits, subject to documentation.
We manage FTA filings, documentation, software integration, and even provide FTA audit defense if needed.
A E Y accounting is offering effective accounting services in Dubai.
Whatever your question is, our team will lead you to the right direction. .
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