Starting a Business? ---> Learn about UAE Business Registration and Licensing <--- Explore Now!

Current UAE Tax Rates and Regulations

Understanding the current tax rates and regulations in the UAE is essential for individuals and businesses operating within or considering the UAE. As of **April 10, 2025**, the UAE has a specific tax framework. Please note that tax laws and rates can change, so it's crucial to always refer to official government sources for the most up-to-date information.

Key UAE Taxes:

Corporate Tax

The UAE introduced a federal Corporate Tax (CT) on the profits of businesses effective for financial years starting on or after **June 1, 2023**. The standard corporate tax rates are:

  • 0% for taxable profits up to AED 375,000.
  • 9% for taxable profits exceeding AED 375,000.

There are specific rules and exemptions, including for qualifying free zone entities, which may be subject to a 0% rate on qualifying income.

Value Added Tax (VAT)

The standard rate of VAT in the UAE is **5%**. It applies to most goods and services, with some exceptions and zero-rated categories.

  • 5% Standard Rate: Applicable to a wide range of goods and services.
  • 0% Zero Rate: Applies to specific categories like exports of goods and services, international transportation, and certain supplies of healthcare and education.
  • Exemptions: Certain sectors are exempt from VAT, including some financial services, residential buildings, and bare land.

Excise Tax

Excise tax is levied on specific goods considered harmful to human health or the environment. The current rates are:

  • 50% on carbonated drinks.
  • 50% on electronic smoking devices and liquids used in such devices.
  • 100% on tobacco products.
  • 100% on energy drinks.

No Personal Income Tax (Generally)

As of **April 10, 2025**, the UAE **does not** generally levy income tax on individuals' salaries, wages, or other personal income.

Other Potential Taxes and Fees

There may be other specific taxes, fees, and charges at the Emirate or municipal level (e.g., tourism fees, municipality fees on residential properties). These vary by Emirate.

Important: This information is a summary and intended for general knowledge. Tax laws and their interpretations can be complex. For accurate and specific advice related to your situation or business, it is essential to consult with qualified tax advisors in the UAE and refer to the official websites of the Federal Tax Authority (FTA) and other relevant government bodies.

Key Regulatory Authorities:

Disclaimer: This page provides general information about UAE tax rates and regulations as of the current date. Tax laws are subject to change. We are not tax advisors, and this information should not be considered professional tax advice. Always consult with qualified professionals and refer to official government sources for the most accurate and up-to-date information.