December 4, 2023

Tax Benefits Of Setting Up Business In Shams Free Zone

2 min read


Shams Free Zone, located in the United Arab Emirates (UAE), is a prime destination for entrepreneurs looking to establish their businesses, and one of its most attractive features is the array of tax benefits it offers. The strategic location of Shams Free Zone, combined with its favorable tax policies, makes it a sought-after choice for startups and established businesses alike. The following information will help you make informed decision if you are looking for getting Shams free zone license.

100% tax exemption:

One of the most appealing aspects of Shams Free Zone is its policy of 100% tax exemption. Businesses registered in Shams are not subjected to corporate and income taxes, ensuring that profits generated by the company remain untaxed. This generous tax exemption policy provides a significant competitive advantage and boosts the financial health of businesses operating within the free zone.

Customs duties exemption:

In addition to the complete tax exemption, Shams Free Zone offers a waiver of customs duties on imports and exports. This benefit significantly reduces the operational costs for businesses engaged in international trade. It allows for seamless movement of goods and materials in and out of the free zone, promoting trade and commerce.

No value added tax (VAT):

Shams Free Zone is exempt from the Value added tax (VAT) that has been introduced in the UAE. This means that businesses operating within the free zone are not required to charge VAT on their products and services, further reducing the financial burden on both the business and its customers.

Repatriation of profits and capital:

Businesses in Shams Free Zone have the freedom to repatriate 100% of their profits and capital without any restrictions. This flexibility allows entrepreneurs to efficiently manage their financial resources, making it an ideal choice for international businesses looking to invest and repatriate their earnings.

No currency exchange controls:

Another key advantage is that Shams Free Zone has no currency exchange controls. This means that businesses can conduct transactions in multiple currencies without cumbersome restrictions. It facilitates international trade and eases financial transactions for businesses dealing with various partners worldwide.

The tax benefits of setting up a business in Shams Free Zone are undeniably enticing. The combination of 100% tax exemption, customs duties waiver, and absence of VAT, along with the freedom to repatriate profits and no currency restrictions, make it an attractive destination for entrepreneurs and corporations looking to optimize their financial resources while strategically positioning themselves in a thriving business environment.