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Why the UAE

The UAE’s Tax Regime

The UAE taxes companies and consumption lightly and does not tax individuals’ income. Corporate tax, introduced in 2023, is 9% above AED 375,000 of taxable income, and VAT is 5%.

Updated October 2026 · Figures checked 21 October 2026

Income tax on individuals
0%1
Income tax on individuals
Corporate tax above AED 375,000
9%2
Corporate tax above AED 375,000
VAT
5%3
VAT
Double tax agreements
1374
Double tax agreements

The UAE’s Tax Regime

What it means for an investor

  • Salaries are not taxed, which helps companies hire and relocate staff.
  • Small profits pay 0%: the first AED 375,000 of taxable income each year is taxed at 0%.
  • Free zone companies can pay 0% on qualifying income if they meet the conditions.
  • 137 double tax agreements can reduce tax abroad on income that flows to the UAE.

Source: UAE Government Portal: Taxation; UAE Government Portal: Corporate tax; Federal Tax Authority: What are the UAE CT rates?; UAE Ministry of Finance: Double Taxation Agreements1,2,5,4

Large multinational groups with global revenue of €750 million or more pay a top-up to an effective 15% since 2025. The details of every tax are in the Business & Tax guides.6

Sources

  1. UAE Government Portal: Taxation
  2. UAE Government Portal: Corporate tax
  3. UAE Ministry of Finance: Value Added Tax
  4. UAE Ministry of Finance: Double Taxation Agreements
  5. Federal Tax Authority: What are the UAE CT rates?
  6. UAE Ministry of Finance: Top-up tax

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.

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