Corporate Taxes in UAE

Dubai is a popular destination for expats from all across the globe, not just for the opportunities it promises but also for the lure of living a ‘tax-free’ life. There are circumstances in which you will be required to pay taxation in some form.

Corporate Taxes

Tax Base For Resident and Foreign Companies
No personal tax is levied.

Tax Rate

Corporate tax (exception of oil and gas companies and subsidiaries of foreign banks) 0%. There are no taxes levied by the Federal Government on income or wealth of companies and individuals.
Tax applicable for all companies: the duty deducted by the municipality in each Emirate at the time of issuance or renewal of a trade licence. 10% of the annual amount of the rent of offices and warehouses and 5% of the annual amount paid by a company to accommodate its employees.
The Abu Dhabi Income Tax Decree of 1965, the Dubai Income Ordinance of 1969 and the Dubai Income Tax Decree, as well as the Sharjah Income Tax Decree 1968 dictate that:Every corporate body that conducts trade or business through a permanent establishment situated in the Emirate is subject to tax at a sliding scale (in general this only applies to oil, gas and petrochemical companies and branch offices of foreign banks) –

Income less than AED1,000,000

0%
AED 1,000,000 <= Income <= AED 2,000,000 10%
AED 2,000,000 <= Income <= AED 3,000,000 20%
AED 3,000,000 <= Income <= AED 4,000,000 30%
AED 4,000,000 <= Income <= AED 5,000,000 40 %
Income >= AED 5,000,000 55%
Custom duties on CIF (cost, insurance, freight) value of goods imported (Sharjah) 5%
Tax Rate For Foreign Companies
None.
Capital Gains Taxation
None
Main Allowable Deductions and Tax Credits
None
Other Corporate Taxes
None