Taxation in the UAE
The sections below provide the basic information on taxation in the UAE.
|Taxable Income Band AED||National Income Tax Rates|
|Not applicable||Not applicable|
No personal taxation currently exists in the United Arab Emirates (UAE).
Laws covering corporate tax exist in all the individual emirates but, in practice, taxes are enforced only on the following entities:
A foreign employee who is not a national of a GCC country and who completes a period of continuous service that is longer than one year is entitled to gratuity. The gratuity is calculated for employees with unlimited employment contracts as follows:
The gratuity is calculated for employees with limited employment contracts as follows:
In both cases the total gratuity may not exceed the remuneration of two years (24 months).
The gratuity is calculated based on the last basic wage paid to the employee. It is payable on the termination or expiration of the employment contract. The employee is entitled to a gratuity for any fraction of a year of service if the employee has completed at least one year of continuous service.
The calculation can vary further depending on the circumstances of termination or cessation of employment.
No capital gains tax is imposed in the UAE. Capital gains are taxed as part of regular business profits. The UAE does not impose net worth tax or estate and gift tax.
Value-added tax at a rate of 5% was introduced in the UAE from January 2018.
The UAE does not impose social security taxes on foreign nationals. UAE-national employees and nationals from the other Gulf Cooperation Council (GCC) countries contribute to retirement and pension funds in accordance with specific regulations.
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The Tax section is provided by EY in accordance with their Terms and Conditions This link opens in a new window . EY accepts no responsibility for the accuracy of any of this information. By using this information you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 1 July 2019 by EY and published in its Worldwide personal tax guide, 2019-20. Tax legislation and administrative practices may change, and this document is a summary of potential issues to consider. This document should not be used as a substitute for professional tax advice which should be sought for the country of arrival and departure in advance of moving in order to discuss your circumstances. It is your responsibility to ensure you make all relevant disclosures to the tax authorities and that you are compliant with local tax legislation.
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