Personal taxes
The UAE doesn't tax employees' salaries, rental income, interest or dividends. Your home country may still treat you as tax resident, though. The UAE has double tax treaties with many countries; check your position with a tax adviser at home.
Individuals become subject to corporate tax if the turnover of a business they run in the UAE exceeds AED 1 million a year. Salary, personal investment and personal real estate income are outside this.
Corporate tax
| Taxable profit | Rate |
|---|---|
| Up to AED 375,000 | 0% |
| Above AED 375,000 | 9% |
| Groups with global revenue above €750 million | 15% (domestic minimum top-up tax) |
- Registration is mandatory: Every company must register with the Federal Tax Authority (EmaraTax), even with no tax due. The late registration penalty is AED 10,000.
- Return: Filed within 9 months of the financial year end. For calendar-year companies the deadline is 30 September.
- Late filing penalty: AED 500 a month in the first year, AED 1,000 a month after that.
Small business relief (extended to 2029)
UAE-resident companies and individuals with revenue up to AED 3 million can elect small business relief: no corporate tax is payable for that period and taxable income doesn't need to be calculated. On 31 August 2026 the UAE extended the relief to 31 December 2029.
Conditions: you still have to register, file returns and keep records. Qualifying free zone persons and members of large multinational groups can't use the relief.
Free zone companies: the 0% option
Companies that count as a "qualifying free zone person" (QFZP) pay 0% on qualifying income. To qualify:
- Real economic substance in the free zone (staff, office, activity),
- Non-qualifying income below 5% of revenue or AED 5 million, whichever is lower,
- Compliance with transfer pricing rules.
Breaching any of these means 9% on all income for five years. Which income counts as "qualifying" depends on the activity, so confirm with a tax adviser.
VAT (5%)
- Mandatory registration: annual taxable turnover above AED 375,000
- Voluntary registration: above AED 187,500
- Some supplies, such as exported services, can be zero-rated.
Frequently asked questions
Is salary taxed in Dubai?
No. There's no personal income tax on salaries in the UAE. If you're still tax resident in your home country, you may owe tax there.
Does a small free zone company pay tax?
With revenue under AED 3 million it can elect small business relief and effectively pay no corporate tax until the end of 2029. Companies choosing qualifying free zone status use the 0% rate instead. Either way, registration and returns are mandatory.
What if I don't register for corporate tax?
There's an AED 10,000 penalty for late registration. Registration is required even if no tax is due.
Is rental income taxed in Dubai?
Individuals' personal real estate rental income isn't taxed. Tenants and owners pay a municipality housing fee of 5% of the annual rental value.