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Mainland (Dubai, United Arab Emirates)

We can help you incorporate in United Arab Emirates


Tax Residency - Companies that are incorporated or otherwise formed or recognised under the laws of the UAE will be considered a resident person. This covers companies incorporated in the UAE under either mainland legislation or applicable Free Zone regulations.

Companies incorporated overseas that are effectively managed and controlled in the UAE may also be deemed tax resident in the UAE.

Basis - Companies are subject to corporate tax on their worldwide income.

Tax Rate – UAE Companies are subject to tax as follows:

  • 0%, for taxable income not exceeding AED 375,000;
  • 9%, for taxable income exceeding AED 375,000;
  • 15% for Multinational Enterprises (Groups with revenues over AED 3.15 billion)

Capital Gains - Capital gains from the disposal of capital assets are treated as ordinary income and subject to corporate taxes.

Dividends - Dividends from resident companies are generally exempt from corporate income tax. Dividends from foreign companies is exempt from tax if: 

  • the shareholding is at least 5%
  • a 12-month uninterrupted holding period (or the intention to hold for 12 months) is in place
  • the participation is subject to tax in its country or territory of residence at a rate that is not lower than 9%, and
  • not more than 50% of the assets directly or indirectly owned by the participation consist of an ownership interest or entitlements that would not qualify for the participation exemption if these assets were held directly by the taxable person.

A shareholding of less than 5% may qualify for the exemption where the acquisition cost of the shares exceeds AED 4 million.

Withholding Taxes - There are no withholding taxes on payments of dividends, interests and royalties to nonresidents.

Foreign-Source Income - A company may elect to have profits from a foreign permanent establishment exempt from tax. Such exemption is available as long as such profits are subject to foreign taxes at a rate not less than 9% in the foreign jurisdiction. Losses, income, expenditure, and foreign tax credits in relation to the foreign permanent establishment will not be deductible for UAE tax purposes if the tax exemption is elected.

Anti-Avoidance Provisions - Transactions between related parties must comply with the arm’s-length principle. Transfer pricing documentation must be prepared if

  • the taxable person is part of a multinational enterprise (MNE) group with a total consolidated group revenue of at least AED 3.15 billion in the relevant tax period, or
  • the taxable person has revenues of at least AED 200 million or more in a relevant tax period.

VAT – VAT of 5% applies to sales of goods and services in the UAE, including the import of services and goods. The export of services is generally zero-rated.

Generally, services which are taxable if provided within UAE then the same needs to be considered as VATable if received from a service provider located outside of UAE (import of services) under reverse charge mechanism, meaning that the recipient of the service in the UAE must pay VAT for such service.

If a FZ company provides services from its place of business in the UAE to a person whose place of establishment or fixed establishment is outside the UAE, it becomes an export of service, and is generally exempt from VAT.

Other taxes – In U.A.E. there is no personal income tax, capital gains tax, real property tax, inheritance tax or estate duty, capital transfer tax, gifts tax or wealth tax.

There is a real property tax levied on the transfer of properties, at rates that vary from 2% to 4%, depending on the Emirate where the property is located. Some municipalities, e.g. Dubai, also levy an annual property tax on the assessed rental value of the property.

  • Tax transparent entity
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 9% Offshore Income Tax Rate
  • 9% Corporate Tax Rate
  • 9% Capital Gains Tax Rate
  • 9% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0% Personal Income Tax Rate
  • 5% VAT Rate
  • 76 Tax Treaties

Country details

United Arab Emirates
Abu Dhabi
Arabic (U.A.E.), Farsi, English, Hindi, Urdu

The United Arab Emirates is a former British protectorate and currently a federation of the Middle East, located to the east of the Arabian Peninsula. It borders Oman to the southeast, with the Persian Gulf to the north and Saudi Arabia to the west and south. It is composed of a hybrid monarchy consisting of 7 emirates, Abu Dhabi, Ajman, Dubai, Fujairah, Ras al Khaimah and Umm al Qaywayn.

It has a population of 9 million. Its capital is Abu Dhabi, but the most populated and popular city is Dubai. Arabic and English are their official languages. The official currency is the United Arab Emirates Dirham (AED), pegged to the US dollar at an exchange rate of 3.67:1.

The Supreme Council, made up of each emirate Sheikhs, is the highest political decision-making body in the country. Although each Emirate retains a considered political, economic and judicial autonomy, with different rules and regulations.

The federation is one of the richest countries in the world, supported by a liberal and open economy with the eighth highest per capita income worldwide and a considerable annual trade surplus.

Having the seventh largest oil reserve in the world, its economy is clearly dependent on this commodity fluctuations. In recent years efforts have been made to diversify the economy, be less oil-dependent and develop sectors such as retail, financial and tourism.

Tax treaties

Country Type Date Signed
Tunisia DTC  1996-04-10
Portugal DTC  2011-01-17
Comoros DTC  2015-03-26
Slovenia DTC  2013-10-12
Guinea DTC  2011-11-13
Georgia DTC  2010-11-25
Morocco DTC  1999-02-09
Bangladesh DTC  2011-01-17
Algeria DTC  2001-04-24
Uruguay DTC  2014-10-10
Switzerland DTC  2011-10-06
Uzbekistan DTC  2007-10-26
Estonia DTC  2011-04-20
Mexico DTC  2012-11-20
Sudan DTC  2001-03-15
Montenegro DTC  2012-03-26
Hungary DTC  2013-04-30
Libya DTC  2013-04-01
Fiji DTC  2012-08-01
Mauritius DTC  2006-09-18
Panama DTC  2012-10-13
Serbia DTC  2013-01-13
Yemen DTC  2001-02-13
Lebanon DTC  1998-05-17
Lithuania DTC  2013-06-30
Cyprus DTC  2011-02-27
Latvia DTC  2012-03-11
Kyrgyzstan DTC  2014-12-07
Venezuela DTC  2010-12-11
Armenia DTC  2002-04-22
Seychelles DTC  2006-09-18
Egypt DTC  1994-12-04
Russian Federation DTC  2011-12-07
Ireland DTC  2010-07-01
Kenya DTC  2011-11-11
Japan DTC  2013-05-02
Luxembourg DTC  2005-11-20
Poland DTC  1993-01-31
Spain DTC  2006-02-04
Romania DTC  1993-04-11
Belgium DTC  1996-09-30
Mongolia DTC  2001-02-21
Ukraine DTC  2003-01-22
Korea, Republic of DTC  2003-09-22
Kazakhstan DTC  2008-12-22
Thailand DTC  2000-03-01
Pakistan DTC  1993-02-07
Bulgaria DTC  2007-06-26
Czech Republic DTC  1996-09-30
New Zealand DTC  2003-10-22
Austria DTC  2003-09-22
Malta DTC  2006-03-13
Netherlands DTC  2007-05-08
Italy DTC  1995-01-22
Germany DTC  2010-07-01
Mozambique DTC  2003-09-24
Turkmenistan DTC  1998-06-09
China DTC  1993-07-01
Philippines DTC  2003-09-21
Finland DTC  1996-03-12
Greece DTC  2010-01-18
Singapore DTC  1995-12-01
Belarus DTC  2000-02-27
France DTC  1989-07-19
Tajikistan DTC  1995-12-17
India DTC  1992-04-29
Malaysia DTC  1995-11-28
Turkey DTC  1993-01-29
Sri Lanka DTC  1992-07-07
Indonesia DTC  1995-11-30
Azerbaijan DTC  2006-11-20
Bosnia and Herzegovina DTC  2006-09-18
Canada DTC  2002-06-09
Viet nam DTC  2009-02-16
Syrian Arab Republic DTC  2000-01-26
Brunei Darussalam DTC  2013-05-21

Tax treaties Map



We can help you incorporate a Limited Liability Company in United Arab Emirates.
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