Tax Facts - United Arab Emirates

 

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Introduction

Like most of the Middle East states, the Government of the United Arab Emirates (UAE) 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 UAE.

Taxation of Investment Income

There are no taxes in the UAE on investment income.

Tax on Property Rental Income

There is no taxation of rental income in the UAE.

Wealth Taxes

There are no wealth taxes in the UAE.

Capital Gains Tax

There is no capital gains tax in the UAE.

Inheritance and Gift Tax

There are no inheritance or gift taxes in the UAE.

Regional and Municipal Taxes

All the Emirates, except Abu Dhabi, levy municipal taxes at the rate of 5% of the rental value of all residences and 10% of the rental value of office premises. A 5% tax is also imposed on hotel services and entertainment and there are sundry small taxes, such as carrier tax, on cinema tickets, etc.

Property Taxes

There are no property taxes in the UAE.

Stamp Duty/Transfer Tax

There is no stamp duty in the UAE.

Sales Tax

There are no consumption taxes or VAT in the UAE, but 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. Appropriate health care insurance 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.

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.