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Income Tax in United Arab Emirates


Personal Income Tax:

There is no personal income tax in United Arab Emirates.



Corporate Income Tax:

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 to AED 2,000,000
10%
AED 2,000,000 to AED 3,000,000
20%
AED 3,000,000 to AED 4,000,000
30%
AED 4,000,000 to AED 5,000,000
40%
Above AED 5,000,000
55%
Custom duties on CIF (cost, insurance, freight) value of goods imported (Sharjah)
5%



There is no income tax on foreign companies and no tax on capital gains.



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Note: Information placed here in above is only for general perception. This may not reflect the latest status on law and may have changed in recent time. Please seek our professional opinion before applying the provision. Thanks.


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This blog is Created by CA Anil Kumar Jain.