GSL / International Taxation / Tax systems of foreign countries / United Arab Emirates: Ajman Free Zone

Ajman Free Zone tax system: audit, reporting and optimization of taxation of United Arab Emirates companies and individuals: VAT, income tax and capital gains

Basic taxes (briefly)

Personal tax No
Corporate tax (in detail) There is currently no federal corporate income tax in the UAE. However, the emirates introduce income tax at their own level. In the emirates, where income tax has been introduced, it is levied only on companies engaged in the extraction and processing of oil and gas and branches of foreign banks.
Capital gains tax. Details There is no capital gains tax in the UAE
VAT. Details The standard VAT rate is 5%.
Other taxes real property tax, municipal duties
Government fee
Stamp duty No

International tax agreement

Albania, Algeria, Andorra, Armenia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bosnia and Herzegovina, Brunei Darussalam, Burundi, Canada, China, Comoros, Cyprus, Czech Republic, Ecuador, Egypt, Equatorial Guinea, Estonia, Ethiopia, Fiji, Finland, Former Yugoslav Republic of Macedonia, France, Georgia, Germany, Greece, Guinea, Hong Kong (China), Hungary, India, Indonesia, Ireland, Italy, Japan, Jersey, Jordan, Kazakhstan, Kenya, Korea (Republic of), Kosovo, Kyrgyzstan, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritania, Mauritius, Mexico, Mongolia, Montenegro, Morocco, Mozambique, Netherlands, New Zealand, Nigeria, Pakistan, Panama, Paraguay, Philippines, Poland, Portugal, Romania, Russian Federation, Saint Kitts and Nevis, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sudan, Switzerland, Syrian Arab Republic, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Kingdom, Uruguay, Uzbekistan, Venezuela, Viet nam, Yemen
   
Argentina, Colombia, Denmark, Faroe Islands, Finland, Iceland, Norway, Sweden


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Taxation of individuals

There is no income tax on individuals in the UAE.

Income tax

The UAE is a federation of seven emirates. There is currently no federal tax on profits/income of companies in the UAE.

However, income tax is imposed by the emirates at their level.

In the emirates where profit tax is imposed, it is only imposed on oil and gas production and processing companies and branches of foreign banks.

Social contributions

Social contributions are payable only to nationals of the UAE and other member states of the Gulf Cooperation Council (GCC).

The contribution rate for UAE nationals is normally 17.5%:

12.5% of the remuneration is paid by the employer and 5% is withheld by the employer from the employee's remuneration.

Higher rates are set in Abu Dhabi: 20% (the employer's contribution is 15%).

VAT

The standard rate of VAT is 5%.

Withholding tax

There is no tax at source in the UAE.

Other taxes

There is no stamp duty in the UAE.

Annual fee

The annual fee for companies is AED 2,000. The fee is payable at the end of each year of incorporation, as is the registration agent fee.

Other taxes and fees

Municipal tax is collected on rented premises. Generally, the tax base is the annual rental value.

The tax is usually levied on tenants, in some cases both tenant and landlord.

The rate for commercial property is usually 10%.

Registration fees may be charged, particularly for land and real estate transactions.

There are also fees in respect of hotel and tourist businesses.

Double taxation treaties

The UAE has entered into tax treaties through the following mechanisms:

99 DTCs: Algeria, Andorra, Armenia, Austria, Azerbaijan, Bangladesh,Barbados, Belarus, Belize, Belgium, Bosnia and Herzegovina, Bulgaria, Brunei, Burundi, Hungary, UK, Guinea, Germany, Greece, Hong Kong, Georgia, Jersey, Egypt, Venezuela, Vietnam, India, Indonesia, Ireland, Italy, Jordan, Kazakhstan, Kenya, Canada, China, Colombia, Comoros, Kosovo, Kyrgyzstan, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Macedonia, Mauritius, Morocco, Spain, Yemen, Mauritania, Mexico, Mongolia, Mauritius, Mozambique, Netherlands, New Zealand, Nigeria, Pakistan, Panama, Paraguay, Poland, Portugal, Romania, Saint Kitts and Nevis, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, Sudan, Syria, 8 TIEAs: Argentina, Czech Republic, Ecuador, Equatorial Guinea, Estonia, Ethiopia, Fiji, Finland, France, Montenegro, South Africa, Sri Lanka, Switzerland, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uruguay, Uzbekistan, Japan.

8 TIEAs: Argentina, Colombia, Denmark, Faroe Islands, Finland, Iceland, Norway, Sweden

Currency controls

There are no currency controls in the UAE.

    Taxes of UAE

    Min. rate for corporate tax No
    Capital gains tax No
    VAT 5%
    Withholding tax No
    Exchange control No
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