United Arab Emirates Tax Overview

The UAE tax system at a glance

The UAE has no personal income tax and only introduced a federal corporate tax in June 2023. The currency is the UAE dirham (AED) and the federal tax authority is the Federal Tax Authority (FTA).

• Currency — UAE dirham (AED) (UAE Central Bank)
• Tax authority — Federal Tax Authority (FTA) (Federal Decree-Law No. 13 of 2016 (establishing the FTA))
• Corporate tax year — The financial year of the business (typically a 12-month accounting period; defaults to the Gregorian calendar year if not otherwise set) (Federal Decree-Law No. 47 of 2022 (Corporate Tax Law))
• Personal income tax — None — there is no personal income tax on individuals in the UAE (PwC Worldwide Tax Summaries — UAE (Individual: Taxes on personal income))
• Headline corporate tax rate — 0% on taxable income up to AED 375,000; 9% on the excess above AED 375,000 AED (Federal Decree-Law No. 47 of 2022 (Corporate Tax Law))
• VAT — Yes — VAT applies at a standard rate of 5% (Federal Decree-Law No. 8 of 2017 (VAT Law))
• Domestic Minimum Top-up Tax (DMTT) — 15% minimum effective tax for in-scope multinational groups with consolidated global revenue of EUR 750 million or more, effective for financial years starting on or after 1 January 2025 (applies only to large MNE groups (OECD Pillar Two)) (Cabinet Decision No. 142 of 2024 (Domestic Minimum Top-up Tax))
• Corporate residence / tax base — Resident juridical persons are taxed on worldwide income; non-residents are taxed on UAE-sourced income and income attributable to a UAE permanent establishment (Federal Decree-Law No. 47 of 2022 (Corporate Tax Law))
• Corporate tax return deadline — Within 9 months after the end of the relevant tax (financial) year (Federal Decree-Law No. 47 of 2022 (Corporate Tax Law), Art. 53)
• VAT return deadline — By the 28th day following the end of each tax period (quarterly or monthly) (Federal Decree-Law No. 8 of 2017 (VAT Law) and Executive Regulation)
• Personal capital gains / wealth / inheritance tax — None — no capital gains, wealth, estate, inheritance or gift tax on individuals (PwC Worldwide Tax Summaries — UAE (Individual: Other taxes))