Introduction

Umm Al Quwain Freezone (UAQFTZ) is a free zone in the United Arab Emirates that offers a number of benefits to businesses, including 100% foreign ownership, no income tax, and low import and export duties. However, businesses in UAQFTZ are still required to pay certain taxes, such as value-added tax (VAT) and customs duty.

VAT

VAT is a consumption tax that is charged on the sale of goods and services in the UAE. The standard VAT rate is 5%. However, there are a number of goods and services that are exempt from VAT, such as food, medicine, and education.

Businesses in UAQFTZ are required to register for VAT if their taxable turnover exceeds AED 375,000 per year. Once registered, businesses must charge VAT on their sales and submit VAT returns to the Federal Tax Authority (FTA) on a quarterly basis.

Customs duty

Customs duty is a tax that is imposed on the import of goods into the UAE. The customs duty rate varies depending on the type of good being imported. However, businesses in UAQFTZ are exempt from customs duty on the import of goods that are for their own use.

Other taxes

There are a number of other taxes that businesses in UAQFTZ may be liable for, such as corporate tax and personal income tax. However, these taxes are only payable by businesses that are incorporated outside of the UAE or by individuals who are not UAE residents.

How to pay taxes in UAQFTZ

To pay taxes in UAQFTZ, businesses must register with the FTA and obtain a tax registration number. Once registered, businesses can pay their taxes online or through a bank transfer.

Here is a more detailed explanation of how to pay VAT:

  1. Register for VAT: To register for VAT, businesses can visit the FTA website and complete the online registration form.
  2. Submit VAT returns: Once registered, businesses must submit VAT returns to the FTA on a quarterly basis. The VAT return must be submitted within 28 days of the end of the quarter.
  3. Pay VAT: VAT payments must be made within 15 days of the due date for submitting the VAT return. VAT payments can be made online or through a bank transfer.

Here is a more detailed explanation of how to pay customs duty:

  1. Declare imported goods: When importing goods into the UAE, businesses must declare the goods to the Customs and Ports Security (CPS). The declaration can be made online or in person.
  2. Pay customs duty: If customs duty is payable, the business must pay the duty to the CPS before the goods can be released. Customs duty can be paid online or in person.
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Conclusion

Businesses in UAQFTZ are required to pay certain taxes, such as VAT and customs duty. However, businesses can benefit from a number of tax exemptions, such as the exemption from income tax and customs duty on the import of goods for their own use.

To pay taxes in UAQFTZ, businesses must register with the FTA and obtain a tax registration number. Once registered, businesses can pay their taxes online or through a bank transfer.

Recommendation: BizDaddy

BizDaddy is a leading business setup consultant that can help you pay taxes in UAQFTZ. BizDaddy has a team of experienced professionals who can help you with every step of the process, from registering for taxes to filing and paying your tax returns.

BizDaddy offers a number of benefits to businesses, including:

  • Expertise: BizDaddy has a deep understanding of the tax system in the UAE and can help you to ensure that you are compliant with all of the applicable tax laws and regulations.
  • Convenience: BizDaddy offers a one-stop shop for tax compliance. This means that you can deal with everything through BizDaddy, from registering for taxes to filing and paying your tax returns.
  • Peace of mind: BizDaddy can help you to avoid costly tax penalties and fines.

If you are serious about complying with the tax laws and regulations in UAQFTZ, I highly recommend contacting BizDaddy. BizDaddy can help you to make the process as smooth and stress-free as possible.