United Arab Emirates

Overview

Last reviewed - 02 September 2022

The United Arab Emirates (UAE), located in the southeast of the Arabian Peninsula, is bordered by the Persian Gulf to the north, Oman to the east, and Saudi Arabia to the south and west. It is a constitutional federation of seven Emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Ras Al-Khaimah, and Fujairah. The federation was formally established on 2 December 1971, and the capital is Abu Dhabi. Arabic is the official language of the United Arab Emirates, with English widely spoken and used in business, and the currency is the United Arab Emirates dirham (AED).

The United Arab Emirates has a well-established infrastructure, stable political system, and one of the most liberal trade regimes in the Gulf region. It continues to be increasingly important, relevant, and attractive to businesses from around the world as a place to do business and as a hub for the region and beyond. The United Arab Emirates is also one of the best examples in the region of an economy that has successfully moved away from reliance on the energy sector. A significant proportion of the gross domestic product (GDP) is being derived from non-oil revenues.

PwC has been practising in the United Arab Emirates for over a quarter of a century, and specialises in audit, assurance, business advisory services, and tax and legal services. Complementing our depth of industry expertise and breadth of skills is our sound knowledge of the local business and regulatory environments across the Middle East.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)	Based on existing Emirate level income taxation regimes, there is income tax at 55%+ rates for UAE concession based oil and gas and petrochemical activities, 20% rate for branches of foreign banks, and (in practice) no taxation or 0% rate for most other companies and branches. Federal UAE CT Law (signed in October 2022) will be effective for the financial years commencing on or after 1 June 2023. Under this law a UAE CT rate of 9% will be applicable to income earned by a taxable person in excess of a threshold of AED 375,000 per annum. Qualifying freezone persons (to be defined further) will be subject to UAE CT at 0% on qualifying income (to be defined further) and 9% on non qualifying income. Non-residents with no PE in the UAE are expected to be subject to 0% WHT on UAE sourced income.

Corporate income tax (CIT) rates

Headline CIT rate (%)

Based on existing Emirate level income taxation regimes, there is income tax at 55%+ rates for UAE concession based oil and gas and petrochemical activities, 20% rate for branches of foreign banks, and (in practice) no taxation or 0% rate for most other companies and branches.

Federal UAE CT Law (signed in October 2022) will be effective for the financial years commencing on or after 1 June 2023. Under this law a UAE CT rate of 9% will be applicable to income earned by a taxable person in excess of a threshold of AED 375,000 per annum. Qualifying freezone persons (to be defined further) will be subject to UAE CT at 0% on qualifying income (to be defined further) and 9% on non qualifying income. Non-residents with no PE in the UAE are expected to be subject to 0% WHT on UAE sourced income.

Corporate income tax (CIT) due dates
CIT return due date	Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation . For concession based oil and gas and petrochemical activities, the dates for filing are defined in the respective concession agreements or fiscal letters.. For branches of foreign banks, the deadline for filing is the last day of the third month following year end. Under the UAE CT Law, all taxable persons are required to file a corporate income tax return within 9 months from the end of the relevant tax period.
CIT final payment due date	Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation . For concession based oil and gas and petrochemical activities, the dates for payments are defined in the respective concession agreements or fiscal letters. For branches of foreign banks, the deadline for payments is the last day of the third month following year end. Under the UAE CT Law, all taxable persons are required to pay corporate tax within 9 months from the end of the relevant tax period.
CIT estimated payment due dates	Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation. For concession based oil and gas and petrochemical activities, the dates for payments are defined in the respective concession agreements or fiscal letters. For branches of foreign banks, the deadline for payments is the last day of the third month following year end. Under the UAE CT Law there is no requirement of UAE estimated tax payments.

Corporate income tax (CIT) due dates

CIT return due date

Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation .

For concession based oil and gas and petrochemical activities, the dates for filing are defined in the respective concession agreements or fiscal letters..

For branches of foreign banks, the deadline for filing is the last day of the third month following year end.

Under the UAE CT Law, all taxable persons are required to file a corporate income tax return within 9 months from the end of the relevant tax period.

CIT final payment due date

Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation .

For concession based oil and gas and petrochemical activities, the dates for payments are defined in the respective concession agreements or fiscal letters.

For branches of foreign banks, the deadline for payments is the last day of the third month following year end.

Under the UAE CT Law, all taxable persons are required to pay corporate tax within 9 months from the end of the relevant tax period.

CIT estimated payment due dates

Currently not applicable for most industries/companies except those currently subject to actual Emirate level income taxation.

For concession based oil and gas and petrochemical activities, the dates for payments are defined in the respective concession agreements or fiscal letters.

For branches of foreign banks, the deadline for payments is the last day of the third month following year end.

Under the UAE CT Law there is no requirement of UAE estimated tax payments.

Personal income tax (PIT) rates
Headline PIT rate (%)	NA

Personal income tax (PIT) due dates
PIT return due date	NA
PIT final payment due date	NA
PIT estimated payment due dates	NA

Value-added tax (VAT) rates
Standard VAT rate (%)	5

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)	NA - No WHT

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)	Same as UAE CT rates, where participation exemption is not available
Headline individual capital gains tax rate (%)	NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)	NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)	NA
Headline gift tax rate (%)	NA