How to Pay Tax for Spa Business in Dubai
Dubai and the UAE are popularly believed to be a tax free area. However, this is not completely true and Dubai does have taxation laws and can be more readily classified as a low-tax location. The Dubai Income Ordinance of 1969 and Dubai income tax decree, which had some amendments made to it in 1970, regulate the taxes that are paid by companies in the emirate. Basically, there is no income tax in Dubai on wages or salaries. However, this rule is only for individuals and does not apply to corporations. On paper, corporation should be levied taxes of up to 55%. In practice, this only applies to oil companies and banks. There is also the concept of municipality tax in the emirate. This is the only tax that businesses like spas in Dubai need to be concerned about if they are offering room, food or services.
The easiest way to calculate municipality tax for a spa business in Dubai is to calculate 5% of the rental you pay on your property. The Dubai Municipality is the one that enforces and collects this tax and they require you come and register your property so that you are taxed correctly. If you do not, they will use an estimate which might be higher than your actual rent.
Dubai Electricity and Water Authority DEWA
Location: D 88 - Dubai - United Arab Emirates View Map
Contact: +971 4 222 1666
Visit Dubai Electricity and Water Authority website
You do not need to file any tax forms in order to pay the municipality tax. That will be automatically sent to you through your monthly DEWA bill. Once you have the bill you can pay the bill and the accompanying tax directly to DEWA.
DEWA allows you to pay the municipality tax along with your bill in a number of different ways. You can pay online, through your mobile or at one of the DEWA payment locations. There are also other options if you cannot use the first three.
Click Here to get a complete list of payment methods.
Click Here to get a complete list of locations where you can pay DEWA for dues owed.
In order to make a payment you will need to use cheque, cash or credit card. There will be a fee of 1.67% on all cards used. If you are mailing in a check you must include contact number and account number on the back of the check plus the bill receipt. The mailing address is as follows:
Dubai Electricity & Water Authority
P.O. Box 564