Tax Facts - United Arab Emirates

Gerard Associates Ltd. Financial Advisory Services does not provide individual tax advice, and nothing contained in this briefing should be construed as such. We make every effort to ensure the accuracy of the information but cannot be held responsible for any liability arising.

It is essential that all clients seek tax advice specific to their own personal circumstances with the relevant tax professional of the jurisdiction(s) in which you are liable to tax.

This has been prepared based on our understanding of current legislation and tax practice as at the date above. However, these are subject to change, and may result in income tax consequences different from those detailed below.

We cannot accept responsibility for its interpretation or any future changes to law.

Introduction

Like most of the Middle East states the Government of the United Arab Emirates receives most of its revenues from the oil industry.

Tax Year

Not applicable.

Assessment Basis

Not applicable.

Income Tax

There is no individual income tax in the United Arab Emirates.

Taxation of Investment Income

There are no taxes in the United Arab Emirates on investment income.

Tax on Property Rental Income

There is no taxation of rental income in the United Arab Emirates.

Wealth Taxes

There are no wealth taxes in the United Arab Emirates.

Capital Gains Tax

There is no capital gains tax in the United Arab Emirates.

Inheritance and Gift Tax

There are no inheritance or gift taxes in the United Arab Emirates.

Regional and Municipal Taxes

Municipal taxes are levied in most Emirates the rate and application of which varies from Emirate to Emirate.

Property Taxes

There are no property taxes in the United Arab Emirates.

Stamp Duty/Transfer Tax

There is no stamp duty in the United Arab Emirates.

Sales Tax

There are no consumption taxes or VAT in the UAE however individual Emirates may charge levies on certain products such as liquor and cigarettes and on certain services such as those provided in the hospitality industry.

Social Security Contributions

Expatriate employees are not required to make social security contributions. Health care coverage is required in order for an individual to obtain a UAE residence permit.

Other

There is a standard 5% importation duty on most imports throughout the Emirates. With higher rates being applied to alcohol and tobacco.

Taxation of Expatriates Living in the UAE

Expatriates living in the UAE and UAE nationals are taxed (or not) in the same way.