GSL / International Taxation / United Arab Emirates: Media Zone “twofour54”

Media Zone "twofour54" in Abu-Dhabi tax system - taxation of UAE companies and individuals: VAT, income tax and capital gains.

Service packages «Media Zone “twofour54” Abu Dhabi, UAE» Service packages «FEZ “Dubai Science Park” (DSP), Dubai, UAE» Service packages «Meydan Free Zone (MFZ)» Service packages «IFZA (International Free Zone Authority)» Service packages «United Arab Emirates: Dubai Mainland Company» Service packages «United Arab Emirates: Dubai Multi Commodities Centre (DMCC) Free Zone» Service packages «United Arab Emirates: Khalifa Industrial Zone Abu Dhabi (KIZAD) Free Zone» Service packages «United Arab Emirates: Offshore Company in Dubai (JAFZA)» Service packages «United Arab Emirates: Umm Al Quwain Free Trade Zone» Service packages «United Arab Emirates: Dubai Internet City Free Zone» Service packages «United Arab Emirates: Sharjah International Airport Free Zone» Service packages «United Arab Emirates: Sharjah Media City Free Zone» Service packages «United Arab Emirates: Dubai South Free Zone» Service packages «United Arab Emirates: Offshore Company in Ajman (AFZA)» Service packages «United Arab Emirates: Offshore Company in Ras Al Khaimah (RAK)» Service packages «United Arab Emirates: Fujairah Creative City Free Zone» Service packages «United Arab Emirates: Hamriyah Free Zone» Service packages «United Arab Emirates: Ajman Free Zone» Service packages «United Arab Emirates: Free Economic Zone Ras Al Khaimah (RAKEZ)» Legislation Tax System Audit Services

Taxes of UAE

9%
Сorporate tax
No
Capital gains tax
5%
VAT
No
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
No
Corporate tax (in detail)
The standard income tax rate is 9%. There are situations where the zero rate applies
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

Taxation of individuals

There is no income tax on individuals in the UAE.

Income tax

The UAE is a federation of seven emirates. Previously, profit tax was introduced by the emirates at their own level (there was no federal tax on corporate profits / income). In the emirates where income tax has been introduced, it is imposed only on companies involved in oil and gas extraction and refining, as well as branches of foreign banks.

As of June 1, 2023, the UAE has also introduced a federal income tax that applies to:

  1. companies and other legal entities incorporated in the UAE;
  2. individuals conducting business activities in the UAE;
  3. foreign legal entities actually managed from the UAE.

The federal income tax rate is 9%. Companies registered in free economic zones (FEZs) are subject to taxation, but there are situations where a 0% rate applies.

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.

International tax treaties

The UAE has entered into 99 Double Tax Treaties (DTC) and 8 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:

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.

In addition, the UAE has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention entered into force for the UAE on September 1, 2019.

Currency controls

There are no currency controls in the UAE.

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