Taxes in the UAE
The main taxes
| Tax | Rate in 2026 | Who pays |
|---|---|---|
| Corporate tax | 0% up to AED 375,000; 9% above | Companies, branches and individuals with business turnover above AED 1 million |
| Qualifying free zone income | 0%; 9% on other income | Qualifying Free Zone Persons |
| Top-up tax (Pillar Two) | Up to an effective 15% | Groups with global revenue of €750 million or more |
| VAT | 5%; some supplies 0% or exempt | Registered businesses charge it; consumers bear it |
| Excise tax | 100% on tobacco and energy drinks; per litre on sweetened drinks | Importers and producers |
| Customs duty | 5% of CIF value on most goods | Importers from outside the GCC |
| Personal income tax | None | — |
Source: UAE Government Portal: Corporate tax; UAE Ministry of Finance: Value Added Tax; UAE Government Portal: Taxation; UAE Ministry of Finance: Domestic Minimum Top-up Tax; UAE Government Portal: Excise tax; UAE Government Portal: Clearing customs and paying customs duty1,2,3,5,6,7
Deadlines that matter
- Corporate tax return: within nine months of the end of the tax period, through EmaraTax.
- Corporate tax registration: late registration carries an administrative penalty of AED 10,000.
- VAT registration: compulsory once taxable supplies and imports exceed AED 375,000 over 12 months, or are expected to within 30 days.
Source: Federal Tax Authority: Corporate Tax Registration; Federal Tax Authority: Registration for VAT8,9
Who to ask
The Ministry of Finance writes the tax laws and the Federal Tax Authority (FTA) runs registration, returns and payments on its EmaraTax platform. Rules change often by Cabinet or Ministerial Decision, so check the FTA guide for your case or ask a registered tax agent before you file.1,5
Each tax in detail
Corporate tax
0% to AED 375,000, 9% above; returns within nine months of the year end.
9% Rate on taxable income above AED 375,000
Read moreQualifying Free Zone Person
0% on qualifying income, 9% on the rest, if every condition is met.
0% On qualifying income
Read moreVAT
5% standard; register above AED 375,000 of taxable supplies a year.
5% Standard rate since 1 January 2018
Read moreExcise tax
100% on tobacco and energy drinks; sweetened drinks taxed per litre by sugar.
100% Tobacco products, energy drinks, e-cigarettes and their liquids
Read moreCustoms duties
5% of CIF value on most imports from outside the GCC.
5% Of CIF value on most imports
Read moreNo personal income tax
No tax on salaries, personal investments or rental income without a licence.
0% Income tax on salaries
Read moreTax residency certificates
Proof of UAE tax residence for treaty benefits abroad; issued by the FTA.
183 days In the UAE within 12 consecutive months: an individual is tax resident
Read moreDouble tax treaties
137 tax treaties; use them with a Tax Residency Certificate.
137 Double taxation agreements concluded
Read moreTransfer pricing basics
Arm’s length prices with related parties; full files above AED 200 million.
AED 200m Revenue from which a business keeps a master file and local file
Read morePillar Two
Large groups pay at least 15% in the UAE from 2025.
15% Minimum effective rate
Read more
Sources
- UAE Government Portal: Corporate tax
- UAE Ministry of Finance: Value Added Tax
- UAE Government Portal: Taxation
- UAE Ministry of Finance: Double Taxation Agreements
- UAE Ministry of Finance: Domestic Minimum Top-up Tax
- UAE Government Portal: Excise tax
- UAE Government Portal: Clearing customs and paying customs duty
- Federal Tax Authority: Corporate Tax Registration
- Federal Tax Authority: Registration for VAT
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.