Tax in UAE - Valcorp International

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Tax Services in UAE

This is a general overview of the most important United Arab Emirates tax rates provided for your consideration.

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Tax in UAEWe cover full spectrum of tax services in UAE

UAE’s most popular business sectors are:

Construction and Infrastructure- If you are knowledgeable about the construction industry and want to start a business in this field, the UAE is the place to be.
E-Commerce Solutions- Dubai alone has become one of the most significant contributors to E-commerce in the Middle East, surpassing Abu Dhabi, a much larger population than Dubai.
Tourism and Travel- The tourism industry is expected to contribute $28.5 billion to the UAE economy over the next ten years.
Real Estate- It is predicted that the real estate sector in the UAE will grow up to 111 percent faster than the current market in the next five years.
Health and Hospitality- Since the pandemic, there has been a greater emphasis on the significance of the health and hospitality sectors.
Hotel Chains and Restaurants-If you want to open a new restaurant or a new hotel branch, the UAE is an excellent place to invest.

How can we help you?

Valcorp provides full scope of accounting and tax advice services in UAE with an international perspective.

The UAE economy is characterized by high dependence on oil revenues, an extensive public sector, and a high GDP. Today, the government of the Emirates adheres to a strategy that is aimed at promoting local products and strengthening their reputation at the international level.

Key tax rates in UAE: CIT and VAT

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Starting from June 2023, companies in the UAE earning more than AED 375,000 ($102,000) per year will have to pay a 9% corporate tax. Until then, most companies are not required to pay any corporate tax.

Foreign companies in the oil and gas sector pay 55% corporate tax, while branches of foreign banks pay 20%. There are no taxes on dividends, capital gains, or intragroup transactions and reorganizations.

The value-added tax (VAT) in the UAE is 5% and applies to companies earning more than AED 375,000 ($102,000). Companies must register with the Federal Tax Authority (FTA) to pay VAT. Registration is voluntary for companies earning between AED 187,500 and AED 375,000.

VAT is typically paid quarterly, within 28 days after the end of the tax period.

However, some taxpayers may have different tax periods appointed by the FTA.

General information on tax in UAE:

The UAE does not levy income tax on individuals. However, it levies corporate tax on oil companies and foreign banks. Excise tax is levied on specific goods which are typically harmful to human health or the environment. Value Added Tax is levied on a majority of goods and services.

The authorities of the United Arab Emirates for the first time will introduce a federal corporate tax on business profits, the country’s Ministry of Finance reported. It will begin to be charged from June 1, 2023 – from the same date in the UAE begins the fiscal year. The standard tax rate will be 9%.