Emirats Àrabs Units flag Emirats Àrabs Units: Entorn econòmic

Impostos als Emirats Àrabs Units

Tax Rates

Consumption Taxes

Nature of the Tax
VAT (value-added tax)
Tax Rate
5%
Reduced Tax Rate
Goods and services exported outside the VAT-implementing GCC member states, international transportation, the supply or import of investment precious metals, the supply of crude oil and natural gas, the first supply of residential real estate, buildings specifically designed to be used by charity organisations, healthcare and education sectors are generally zero-rated.
Other Consumption Taxes
Excise duties were introduced in 2017 for three types of products: carbonated beverages (50%), tobacco and electronic smoking devices and tools (100%), energy drinks (100%).
 
Find out more about Taxes and Accounting in the United Arab Emirates on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
0%. There are no taxes levied by the Federal Government on income or wealth of companies and individuals.
Tax Rate For Foreign Companies
As a general rule, taxation in the UAE is based on the territoriality concept (and not on the worldwide one). Non-resident companies carrying out a trade or business in an Emirate through a permanent establishment in that Emirate are formally taxable under the relevant Emirate tax decree, although no taxation is imposed on corporates' income.

Branches of foreign banks are taxed at 20% in most Emirates.

Capital Gains Taxation
Capital gains are generally not subject to tax, unless they are derived by a company that is taxable under the purview of income tax or banking tax decrees.
Main Allowable Deductions and Tax Credits
Deductions are determined based on accounting principles and the tax decrees of the various Emirates. In general, deductions are not that significant as most companies in the United Arab Emirates are not subject to taxation on income (except for upstream oil and gas companies and branches of foreign banks operating in the country).
Other Corporate Taxes
Most Emirates impose a municipality tax on properties, generally by reference to the annual rental value. The tenants are normally the taxpayer, although in some cases separate fees are payable both by tenants and property owners. In the Emirate of Dubai, the municipality tax on property is currently imposed at 2.5% for commercial properties (borne by the owner) at 5% of the specified rental index for residential properties (paid by the tenant).
Furthermore, a registration fee may also be levied on the transfer of ownership of land or property. For instance, a land registration fee is levied in the Emirate of Dubai at a rate of 4% of the sale value of the property (also applicable on the direct or indirect transfer of shares in an entity that owns real property).

There is a social security regime in the United Arab Emirates that applies to UAE and GCC national employees only. In most of the Emirates, and for UAE national employees, social security contributions are calculated at a rate of 17.5% of the employee's gross remuneration as stated in the employment contract. Out of the 17.5%, 5% is payable by the employee and the remaining 12.5% is payable by the employer; in Abu Dhabi, the overall rate is 20%, of which 15% is paid by the employer.

The different Emirates impose hotel levies (for instance, a fee of between AED 7 to 20 per room/night plus 7% on the total value of the invoice is levied in Dubai, whereas in Abu Dhabi it is equal to AED 15 per room/night plus 6% on the room price). Municipality fees on hotel sales are levied in Abu Dhabi (4%) and Dubai (7%).

Other Domestic Resources
UAE Federal Tax Authority
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions that a medium-sized company must pay in a given year.

Country Comparison For Corporate Taxation

  United Arab Emirates Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 5.0 20.8 10.6 9.0
Time Taken For Administrative Formalities (Hours) 116.0 204.0 175.0 218.0
Total Share of Taxes (% of Profit) 15.9 32.1 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

No personal tax is levied N/A
Most Emirates impose a rental tax Residential tenants pay 5% of annual rent and commercial tenants pay 10% of annual rent in Dubai. Expat tenants pay 3% of annual rent whereas UAE citizens do not pay any rental tax in Abu Dhabi. All tenants pay 2% of annual rent as rental tax in Sharjah.
Real property tax A transfer charge is levied on the transfer of real estate in the UAE (4% in the Emirate of Dubai and 2% in the Emirate of Abu Dhabi).
Allowable Deductions and Tax Credits
No personal tax is levied in the UAE, hence tax deductions are not applicable.
Special Expatriate Tax Regime
There is no special tax regime for expatriates in the UAE.

Non-GCC national employees who completed at least one year of service are entitled to an end-of-service benefit calculated as 21 days per year of basic wages for the first five years of employment, plus 30 days per year of basic wage for each additional year of service (capped at two years’ remuneration).

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Agreements on the avoidance of double-taxation
Withholding Taxes
No withholding tax is levied by the federal government of the UAE.
Bilateral Agreement
Spain and United Arab Emirates signed a Double Taxation Treaty.

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Find out more about Taxes and Accounting in the United Arab Emirates on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: May 2022

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