UAE Tax Rates 2023
Last partial update, July 2023Personal Income Tax
There is no tax on individuals.Corporate Income Tax
Branches of foreign banks pay 20%.Oil and gas companies pay up to 55%.
Starting June 1, 2023 a 9% corporate income tax rate is imposed on income exceeding AED 375,000.
Foreign investors can hold up to 49% of the share capital in UAE mainland companies.
In companies located in free trade zones foreign holding of 100% is allowed.
Free Trade Zones, FTZ
In the UAE there are more than 45 free trade zones with their specific regulations.FTZ offer tax holidays of 10-50 years.
In certain FTZ there is also an exemption from customs duties.
Capital Gains
There is no tax on capital gains for both individuals and companies.Offset of losses
Companies can carry forward losses against up to 75% of the current year income, the reminder can be carried forward indefinitely.Under certain terms, when holding 75% or more of the common shareholding, losses can be transferred in the same group.
UAE Social Security
The contributions by the employer and the employee are subject to ceiling defined by law.Employers- pay 12.5%.
Employees –pay 5%.
In the Emirate of Abu Dhabi the rates are:
Employers-15%
Employees- 5%
The tax is withheld by the employer.
Other Tax Issues
Dividend - NAWithholding Tax – NA
Anti Avoidance Rules - NA
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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