United Arab Emirates vs Bermuda

The standard corporate income tax rate in the UAE is set at 9% on taxable income above AED 375,000.

The corporate income tax rate is set at 0% for taxable income not exceeding 375,000 UAE dirham (AED) or qualifying income of a Qualifying Free Zone Person (QFZP).*

15% (if subject to Bermuda CIT) or 0%.

According to the UAE CT law, all taxable persons must submit the company tax return within nine months after the end of the relevant tax period.

If subject to Bermuda CIT, tax returns are proposed to be due by the 15th day of the 10th month following the fiscal year-end.

According to the UAE CT law, all taxable persons must pay corporate tax within nine months after the end of the relevant tax period.

Upon filing the CIT return (if applicable), a 'true-up' payment considering previous estimated payments must be made no later than the due date of the return, regardless of when the return is filed.

According to the UAE CT law, there is no need to estimate/prepay taxes.

Taxes are paid in instalments.

The first instalment is proposed to be due by the 15th day of the 8th month after the beginning of the fiscal year, amounting to 50% of the expected tax liability for the year.

The second instalment is due by the 15th day of the 12th month after the beginning of the fiscal year, bringing the total instalments to 90% of the expected tax liability for the year.

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Individuals: Generally, there is no personal capital gains tax, as the UAE does not levy personal income tax.

Companies: Capital gains are generally treated under corporate tax rules and typically fall within the scope of corporate tax, unless special rules such as the participation exemption or QFZP (Qualifying Free Zone Person) apply.

There is no VAT or sales tax in Bermuda.

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