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UAE Tax Guide 2026

0% personal income tax! 5% VAT. New 9% corporate tax (2023). Still one of the world's most tax-friendly places.

📋 UAE Tax Summary

🚫 Personal Income Tax

0% — ZERO!
• No tax on salary, bonuses, allowances
• No tax on investment income
• No capital gains tax
• No inheritance tax
Take home 100% of your salary!
• This is THE #1 reason people move to UAE

🏪 VAT (Value Added Tax)

5% VAT since 2018
• One of the lowest in the world
• Applies to most goods and services
• Exemptions: Healthcare, education, public transport
• Zero-rated: Gold & diamond (investment)
• Tourist VAT refund available

🏢 Corporate Tax (NEW!)

9% on profits above AED 375,000 (since June 2023)
0% up to AED 375,000
• Free zone companies: 0% (qualifying income!)
• Still lowest in the world
• No withholding tax on dividends/interest

⚠️ Important Notes

  • Municipality fees: 5% on rent (DEWA bill). Not a tax on income, but adds to costs.
  • Tourism tax: Hotels add 7-10% tourism fees + municipality fee.
  • Customs duty: 5% on imports (mostly absorbed by businesses).
  • Excise tax: 50-100% on tobacco, energy drinks, sugary drinks, e-cigarettes.
  • US citizens: Still must file US taxes globally! UAE = no tax but US obligations remain.