Log in
Jul 2, 2026
The record, set straight
Start here before reading anything else
Two statements are both true. Most content about UAE taxes gets at least one of them wrong.
The myth
"The UAE is completely tax-free. There are no taxes in Dubai."
The reality
"The UAE has seven types of tax or fee that can apply to a business. Knowing which ones apply to you — and which six don't — is the entire game."
The taxes that exist
Seven. Not zero. Not fifty.
These are the taxes and fees in force in the UAE in 2026. Most businesses encounter two or three of them — which ones depend entirely on your structure, your revenue, and what you sell.
Corporate Tax (CT)
9%above AED 375k
Applies to businesses with taxable profit above AED 375,000. Free zone QFZP entities can earn 0% on qualifying income — but only with genuine substance and compliant activity.
Filing: 9 months after tax period end
First AED 375,000: 0%. Everything above: 9%. Small Business Relief available for revenue ≤ AED 3M (until 31 Dec 2026). Free zone companies must still register with the FTA even at 0%.
Value Added Tax (VAT)
5%standard rate
Mandatory registration when annual taxable supplies exceed AED 375,000. Voluntary from AED 187,500. Applies to most goods and services supplied in the UAE.
Filing: 28 days after VAT period end
0% on exports, international transport, first residential property supply, healthcare, education. Exempt: certain financial services, subsequent residential property sales. Businesses can recover input VAT on purchases.
Excise Tax
50–100%product-specific
Applies only to manufacturers, importers, and stockpilers of specific products deemed harmful to health or the environment. Does not affect most businesses.
Filing: 15th day after each tax period
100% on tobacco, e-cigarettes, e-liquids, energy drinks. 50% on carbonated and sweetened beverages. Calculated on retail price or FTA standard price — whichever is higher.
Customs / Import Duty
5%of CIF value
Applies to imports of goods into the UAE mainland. Goods entering from GCC member states are generally duty-free. Free zone imports are suspended until goods enter the mainland.
Paid at point of import clearance
Calculated on Cost + Insurance + Freight (CIF). CEPA partner countries (India, Turkey, Indonesia, South Korea, Australia and 27 others) often benefit from reduced or zero rates. Some goods carry different rates — tobacco and alcohol face higher duties.
Domestic Minimum Top-up Tax (DMTT)
15%min effective rate
Applies only to multinational enterprise groups with consolidated global revenue of EUR 750 million or more (in at least two of the last four fiscal years). The vast majority of businesses are unaffected.
Effective from 1 Jan 2025 · First filing due 2027
A top-up mechanism — not a replacement for corporate tax. If a group's effective tax rate on UAE profits falls below 15%, the DMTT bridges the gap. OECD Pillar Two aligned. Cabinet Decision No. 142 of 2024.
Municipal / Housing Fee
5–10%of annual rent
Paid by tenants on residential and commercial properties. Rate varies by emirate. Added to utility bills (DEWA/ADDC). Applies to anyone renting property in the UAE.
Collected through utility bills (monthly)
Dubai: 5% of annual rent value. Sharjah / Ajman: 10%. Ras Al Khaimah: not charged. Paid by the tenant, not the owner. Separate from any maintenance fees charged by building developers.
Property Transfer Fee
4%of purchase price
One-time fee payable to the Dubai Land Department at the point of property sale or transfer. Typically split 50/50 between buyer and seller, though negotiable. No annual property tax exists.
One-time at transaction
Applies in Dubai. Other emirates have different rates. Commercial property purchases also attract 5% VAT. There is no annual recurring property tax in the UAE — no equivalent of council tax, property tax, or rates.
Tourism Dirham (Hotel Tax)
AED 7–20per room per night
Levied on hotel guests in Dubai. Rate varies by hotel star rating and room type. Applies to the first 30 nights of a hotel stay. Does not apply to long-term residential rentals.
Per room, per night · First 30 nights
AED 7: 1-star · AED 10: 2-star · AED 15: 3/4-star · AED 20: 5-star. Charged separately from the room rate and from 5% VAT. Two-bedroom suites are charged per room (double the rate).
The taxes that don't exist
Six things you will never pay in the UAE
These are not deferred, capped, or conditionally waived. They simply don't exist in the UAE tax code — and that distinction is worth writing down.
Personal Income Tax
0%
does not exist
Capital Gains Tax
0%
does not exist
Inheritance / Estate Tax
0%
does not exist
Wealth Tax
0%
does not exist
Withholding Tax
0%
does not exist
Payroll Tax (expats)
0%
not for non-GCC nationals
Your tax profile
Which taxes actually apply to you?
Select the profile that best describes your situation to see which of the seven taxes above are relevant to you — and which you can stop worrying about.
Live Calculator
What will your UAE corporate tax actually be?
Enter your expected annual taxable profit and choose your entity type. See your tax owed in real time.
AED
AED
Your estimated tax breakdown
Enter your annual profit above to see your corporate tax calculation.
Global context
UAE vs the world
Statutory rates — what you pay before credits, deductions, and special regimes.
The questions everyone asks
Five things people get wrong about UAE taxes
Does a UAE Golden Visa make me tax-resident? +
Not automatically — but it makes it significantly easier to establish tax residency. The UAE does not apply a minimum-stay rule to hold a Golden Visa. But to claim UAE tax residency under most double-tax treaty frameworks or to sever residency in a high-tax home country, you typically need to demonstrate meaningful physical presence and economic ties. The UAE's own tax residency criteria (Cabinet Decision No. 85 of 2022) require 183+ days of physical presence per year, or 90 days if you have a "permanent residence or carry on a job or business" in the UAE. A Golden Visa is the legal basis that makes this presence coherent — it's the foundation, not the certificate itself.
Does the free zone 0% rate automatically apply to my company? +
No. Every free zone entity is a taxable person under UAE Corporate Tax law. The 0% rate on qualifying income only applies if your company qualifies as a Qualifying Free Zone Person (QFZP) — which requires simultaneously meeting five conditions: adequate substance in the free zone, qualifying income only (or within the de-minimis threshold of 5% / AED 5M), no election to be taxed at standard rates, full transfer pricing compliance, and audited financial statements. Failing any one condition loses QFZP status for that entire tax year and the four following years. The FTA is actively reviewing QFZP compliance in 2026.
Are capital gains from selling a UAE property taxable? +
Not through a capital gains tax — which doesn't exist in the UAE. However, if you are a business that buys and sells property as part of its trading activity, gains may be included in taxable business profit and subject to the 9% corporate tax rate. If you are an individual selling a property held as a personal investment, there is no tax on the gain. The one-time 4% property transfer fee is payable at the point of sale (typically shared between buyer and seller) regardless of any gain or loss on the transaction.
Does the DMTT affect my free zone company? +
Only if your free zone company is a constituent entity of a multinational group with EUR 750 million or more in consolidated global revenue in at least two of the last four fiscal years. If your business is independent, or part of a smaller group, the DMTT does not apply — regardless of your free zone status. For in-scope groups, the DMTT can apply even to entities with QFZP status, because the Pillar Two effective tax rate calculation differs from the standard UAE corporate tax calculation and a group-wide top-up may arise even where the local entity pays 0% corporate tax.
Do I need to register for both corporate tax and VAT? +
Quite possibly — they are separate registrations with separate thresholds and timelines. Corporate tax registration is mandatory for all taxable persons regardless of revenue level (the FTA has set registration deadlines by trade licence issuance month). VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 annually, with a penalty of AED 10,000 for late registration. A business can be registered for corporate tax but not VAT (if below the VAT threshold), or for both simultaneously. Free zone companies that have not yet filed their first corporate tax return and obtained a Tax Registration Number should do so before the 30 September 2026 deadline if their financial year ended 31 December 2025.
Virtuo Services · UAE Compliance & Business Setup
Know what you owe. Build what you keep.
Virtuo helps businesses structure correctly from day one — so the right taxes apply, the wrong assumptions don't cost you, and your UAE platform holds up at every renewal and audit.
Talk to Virtuo on WhatsAppinfo@virtuo.ae · +971 56 515 1315
Official sources only. All tax rates, thresholds and filing deadlines are drawn directly from UAE federal legislation and official government bodies.
Corporate Tax (9% / 0%): Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE Ministry of Finance); UAE Official Government Portal — u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax; Federal Tax Authority (FTA) Corporate Tax legislation page — tax.gov.ae/en/legislation/corporate.tax.aspx; Ministerial Decision No. 139 of 2023 on Qualifying Income (QFZP activities); Ministerial Decision No. 229 of 2025 (updated QFZP conditions and qualifying activities); Cabinet Decision No. 75 of 2023 on Administrative Penalties for violations of tax legislation; Cabinet Decision No. 100 of 2023 on determining categories of taxable persons; Federal Decree-Law No. 47 of 2022, Article 21 — Small Business Relief threshold AED 3,000,000 revenue; Ministerial Decision No. 73 of 2023 on Small Business Relief.
VAT (5%): Federal Decree-Law No. 8 of 2017 on Value Added Tax (original legislation); Federal Decree-Law No. 16 of 2025 amending the VAT Law (5-year VAT credit limitation, effective 1 January 2026); UAE Official Government Portal — u.ae/en/information-and-services/finance-and-investment/taxation/value-added-tax-vat; Federal Tax Authority VAT legislation — tax.gov.ae/en/legislation/vat.aspx; Cabinet Decision No. 46 of 2020 on zero-rating of exported services.
Excise Tax (50–100%): Federal Decree-Law No. 7 of 2017 on Excise Tax; Cabinet Decision No. 38 of 2017 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price (tobacco 100%, carbonated beverages 50%); Cabinet Decision No. 52 of 2019 amending excise goods to include energy drinks (100%) and sweetened beverages (50%); Federal Tax Authority Excise Tax legislation — tax.gov.ae/en/legislation/excise.tax.aspx.
Customs Duty (5%): GCC Common Customs Tariff (standard rate 5% on CIF value), administered through UAE Federal Customs Authority — fcauae.gov.ae; UAE Ministry of Finance; duty-free access for CEPA partner countries — UAE Ministry of Foreign Trade (MoFT) / MOFAIC.
DMTT — Domestic Minimum Top-up Tax (15%): Cabinet Decision No. 142 of 2024 on the Domestic Minimum Top-up Tax (DMTT); UAE Ministry of Finance official DMTT page — mof.gov.ae/en/public-finance/tax/uae-domestic-minimum-top-up-tax; UAE Ministry of Finance official page — mof.gov.ae/en/public-finance/tax/top-up-tax; OECD/G20 Inclusive Framework on BEPS — Pillar Two GloBE Model Rules (reference framework).
Municipal / Housing Fee: Dubai Municipality fee structure (5% of annual rental value, collected via DEWA utility bills) — dm.gov.ae; Dubai Electricity and Water Authority (DEWA) — dewa.gov.ae.
Property Transfer Fee (4%): Dubai Land Department (DLD) — dubailand.gov.ae; DLD official fee schedule — 4% of property sale value.
Tourism Dirham: Dubai Department of Economy and Tourism (DET) — dubaitourism.ae; official Tourism Dirham fee schedule (AED 7–20 per room per night by hotel star rating, first 30 nights).
UAE Tax Residency: Cabinet Decision No. 85 of 2022 on Tax Residency in the UAE (183-day and 90-day rules); UAE Ministry of Finance.
International rate comparisons: OECD Corporate Tax Statistics, 2025 edition (oecd.org) — worldwide average statutory corporate income tax rate 23.58% across 181 jurisdictions; Tax Foundation, "Corporate Tax Rates by Country 2025" (taxfoundation.org) — the internationally recognised statistical reference for statutory corporate rate comparisons; UK corporate tax rate 25% — HM Revenue & Customs (hmrc.gov.uk) / UK Finance Act 2021; US federal corporate tax rate 21% — Internal Revenue Service (irs.gov) / Tax Cuts and Jobs Act 2017; Germany corporate rate ~30% (federal 15% + solidarity surcharge + trade tax) — German Federal Ministry of Finance (bundesfinanzministerium.de); France corporate rate 25% — Direction Générale des Finances Publiques (impots.gouv.fr); Singapore corporate rate 17% — Inland Revenue Authority of Singapore (iras.gov.sg).
Figures current as of July 2026. Tax legislation and rates are subject to change — always verify current requirements with the Federal Tax Authority (tax.gov.ae) or the UAE Ministry of Finance (mof.gov.ae) before making compliance or business decisions. This article is for educational purposes only and does not constitute tax, legal, or financial advice. Consult a UAE-registered tax agent for your specific situation.
Corporate Tax (9% / 0%): Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (UAE Ministry of Finance); UAE Official Government Portal — u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax; Federal Tax Authority (FTA) Corporate Tax legislation page — tax.gov.ae/en/legislation/corporate.tax.aspx; Ministerial Decision No. 139 of 2023 on Qualifying Income (QFZP activities); Ministerial Decision No. 229 of 2025 (updated QFZP conditions and qualifying activities); Cabinet Decision No. 75 of 2023 on Administrative Penalties for violations of tax legislation; Cabinet Decision No. 100 of 2023 on determining categories of taxable persons; Federal Decree-Law No. 47 of 2022, Article 21 — Small Business Relief threshold AED 3,000,000 revenue; Ministerial Decision No. 73 of 2023 on Small Business Relief.
VAT (5%): Federal Decree-Law No. 8 of 2017 on Value Added Tax (original legislation); Federal Decree-Law No. 16 of 2025 amending the VAT Law (5-year VAT credit limitation, effective 1 January 2026); UAE Official Government Portal — u.ae/en/information-and-services/finance-and-investment/taxation/value-added-tax-vat; Federal Tax Authority VAT legislation — tax.gov.ae/en/legislation/vat.aspx; Cabinet Decision No. 46 of 2020 on zero-rating of exported services.
Excise Tax (50–100%): Federal Decree-Law No. 7 of 2017 on Excise Tax; Cabinet Decision No. 38 of 2017 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price (tobacco 100%, carbonated beverages 50%); Cabinet Decision No. 52 of 2019 amending excise goods to include energy drinks (100%) and sweetened beverages (50%); Federal Tax Authority Excise Tax legislation — tax.gov.ae/en/legislation/excise.tax.aspx.
Customs Duty (5%): GCC Common Customs Tariff (standard rate 5% on CIF value), administered through UAE Federal Customs Authority — fcauae.gov.ae; UAE Ministry of Finance; duty-free access for CEPA partner countries — UAE Ministry of Foreign Trade (MoFT) / MOFAIC.
DMTT — Domestic Minimum Top-up Tax (15%): Cabinet Decision No. 142 of 2024 on the Domestic Minimum Top-up Tax (DMTT); UAE Ministry of Finance official DMTT page — mof.gov.ae/en/public-finance/tax/uae-domestic-minimum-top-up-tax; UAE Ministry of Finance official page — mof.gov.ae/en/public-finance/tax/top-up-tax; OECD/G20 Inclusive Framework on BEPS — Pillar Two GloBE Model Rules (reference framework).
Municipal / Housing Fee: Dubai Municipality fee structure (5% of annual rental value, collected via DEWA utility bills) — dm.gov.ae; Dubai Electricity and Water Authority (DEWA) — dewa.gov.ae.
Property Transfer Fee (4%): Dubai Land Department (DLD) — dubailand.gov.ae; DLD official fee schedule — 4% of property sale value.
Tourism Dirham: Dubai Department of Economy and Tourism (DET) — dubaitourism.ae; official Tourism Dirham fee schedule (AED 7–20 per room per night by hotel star rating, first 30 nights).
UAE Tax Residency: Cabinet Decision No. 85 of 2022 on Tax Residency in the UAE (183-day and 90-day rules); UAE Ministry of Finance.
International rate comparisons: OECD Corporate Tax Statistics, 2025 edition (oecd.org) — worldwide average statutory corporate income tax rate 23.58% across 181 jurisdictions; Tax Foundation, "Corporate Tax Rates by Country 2025" (taxfoundation.org) — the internationally recognised statistical reference for statutory corporate rate comparisons; UK corporate tax rate 25% — HM Revenue & Customs (hmrc.gov.uk) / UK Finance Act 2021; US federal corporate tax rate 21% — Internal Revenue Service (irs.gov) / Tax Cuts and Jobs Act 2017; Germany corporate rate ~30% (federal 15% + solidarity surcharge + trade tax) — German Federal Ministry of Finance (bundesfinanzministerium.de); France corporate rate 25% — Direction Générale des Finances Publiques (impots.gouv.fr); Singapore corporate rate 17% — Inland Revenue Authority of Singapore (iras.gov.sg).
Figures current as of July 2026. Tax legislation and rates are subject to change — always verify current requirements with the Federal Tax Authority (tax.gov.ae) or the UAE Ministry of Finance (mof.gov.ae) before making compliance or business decisions. This article is for educational purposes only and does not constitute tax, legal, or financial advice. Consult a UAE-registered tax agent for your specific situation.
Social Share:
CEO/Founder, Virtuo
Jonaid Ali Mohammad
An American entrepreneur with 18+ years in the Global Wireless Industry and IT Asset Disposition, Jonaid built and exited businesses before relocating to Dubai. Through Virtuo, he advises entrepreneurs, investors, and families on UAE business structuring, residency, banking readiness, tax considerations, and market entry.
