The UAE does not levy income tax on individuals.
The UAE levies corporate tax on oil companies and foreign banks only. It has not yet applied corporate tax on other industries.
Businesses registered in the free zones are exempt from corporate tax for certain time and such time can be extended. Rules and regulations of independent free zones apply. Refer to the business file.
The UAE has 94 agreements in place with other nations to avoid double taxation on investments overseas. The agreements on the Avoidance of Double Taxation are aimed to:
- promote the country's development goals and diversify its sources of national income
- eliminate double taxation as well as additional, indirect taxes and tax evasion
- eliminate any obstacles related to cross-border trade and investment flows
- provide protection to taxpayers from double taxation, whether direct or indirect
- promote the exchange of goods and services and the free movement of capital.
Taxes in tourist facilities
Restaurants, hotels, hotel apartments, resorts etc. in the UAE might charge one or more of the following taxes:
- 10 per cent tax on the room rate
- 10 per cent service charge
- 10 per cent municipality fees
- City tax (ranging from 6 to 10 per cent)
- 6 per cent tourism fee
In Dubai, hotels charge 'Tourism Dirham Fee' per room per night of occupancy (for a maximum of 30 consecutive nights) ranging from AED 7 to 20 depending on the category/grade of the hotel.
In May 2016, it was announced that hotels in Abu Dhabi would charge a new additional fee of 4 percent of hotel stay bill and AED 15 charges per night per room.
In Ras Al Khaimah, hotels charge AED 15 tourism fee per room per night.
Laws and regulations:
Updated on 11 Sep 2019