Taxation

Income tax is not applicable on individuals in the UAE. There are also no sales or corporate taxes except for a rate of up to 55% for oil and gas companies on UAE sourced income and 20% for branches of foreign banks.

Depending on the emirate, hotel services are subject to tax ranging from 5% to 10% and most emirates impose a municipal tax at rates between 2.5% and 10% on rent paid for commercial and residential premises. A further 15AED fee per night is applied.

VAT is being implement as from 1st January 2018 at a rate of 5%. Businesses will be required to keep records of their activities and transactions. Companies with an annual turnover of more than AED375,000 (~ $100,000) are mandated to register, whereas companies with revenue below AED375,000 but over AED187,500 will have an option to register if they wish but do not have to collect VAT from their customers.

Industries and products within education, healthcare and staple foods items will not be taxed.