- Brackets updated
- Special regimes updated
migrated from the production database; research reasoning not recorded.
Top income tax
None
Territorial system
Corporate tax
9.0%
VAT
5.0%
standard rate
Tax residency
183 days
137 tax treaties
United Arab Emirates tax profile
Data year: 2026
- Tax system
- Territorial No federal personal income tax. Federal corporate tax (UAE CT) applies from financial years starting on or after 1 June 2023 at 0% on taxable income up to AED 375,000 and 9% above that threshold. Natural persons conducting a UAE business or business activity are subject to UAE CT at 9% where turnover from that activity exceeds AED 1 million; wages, personal investment income and real estate investment income are excluded from that turnover test. Domestic minimum top-up tax (DMTT) applies from financial years starting on or after 1 January 2025 for MNE groups with consolidated global revenue of EUR 750 million or more in at least two of the four preceding years, aligned with OECD Pillar Two.
- Top PIT rate
- No Income Tax
- Corporate tax rate
- 9.0%
- VAT
- 5.0%
- Capital gains tax
- No Capital Gains Tax
- Social security (employee)
- 5.0%
- Social security (employer)
- 12.5%
- Social security cap (annual)
- AED 600,000
- Dividend withholding
- 0.0%
- Interest withholding
- 0.0%
- Royalty withholding
- 0.0%
- Treaty count
- 137
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| AED 0 | AED 375,000 | 0.0% |
| AED 375,000 | and above | 9.0% |
Special regimes (2)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Free Zone Regime 0% corporate tax on qualifying income for Qualifying Free Zone Persons (QFZPs);... | 0.0% | Duration not recorded | Active |
| Small Business Relief Elective relief for tax-resident persons with revenue not exceeding AED 3 millio... | No rate or amount recorded | Duration not recorded | Active |
Tax flags
Participation Exemption
Territorial Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- Cabinet Decision No. 85 of 2022 (effective 1 March 2023) defines UAE tax residency for domestic law and treaties. An individual is a UAE tax resident if any of the following apply: usual or primary place of residence and centre of financial and personal interests in the UAE; physical presence in the UAE for 183 or more days in a consecutive 12-month period; or physical presence for 90 or more days in a consecutive 12-month period while being a UAE national, GCC national, or UAE residence permit holder who also has a UAE permanent home or UAE employment or business.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
Sources
- PwC Worldwide Tax Summaries - UAE (accessed Oct 9, 2026) PIT, CIT rates and brackets, VAT, withholding, social security, residency, free zones, small business relief, DMTT
- UAE Federal Tax Authority (accessed Oct 9, 2026) Official tax authority; corporate tax and VAT administration
- UAE Ministry of Finance - DTAs (accessed Oct 9, 2026) 137 concluded double taxation agreements