United Arab Emirates

With the broader objective of having a simplified yet robust UAE CT regime to reduce the compliance burden for taxpayers, a WHT (currently set at 0%) will apply to certain types of UAE-sourced income derived by non-residents insofar as it is not attributable to a PE of the non-resident. The applicable WHT rate, as well as the categories of income to which WHT applies, may be set out in a decision issued by the Cabinet.

Given the current 0% WHT rate, it is not expected that there will be any registration or filing obligation.

WHT credit

A credit is available for any UAE WHT suffered by a new UAE taxable person to reduce its UAE CT payable in the same tax period. This WHT credit is limited to the lower of the amount of WHT deducted and the UAE CT due.

Any excess of such WHT credit will be refunded to the taxable person.

Tax treaty network

UAE national or resident individuals and UAE resident companies have access to an extensive and growing double tax treaty (DTT) network. The DTTs could allow for relief from taxation in DTT partner countries. The DTTs currently in force are listed below based on publicly available information which may not be up to date. A number of other DTTs are at various stages of negotiation and ratification.

Notes

1. This DTT includes a ‘favoured nation’ clause. If this jurisdiction ever concludes a more favourable treaty WHT rate with a country other than the UAE, then the more favourable treaty WHT rate will automatically apply to the UAE treaty as well. Note that the above-mentioned rates do not reflect the more favourable DTT rates but only the rates presented in the DTT between the UAE and the relevant jurisdiction. The more favourable rates will need to be confirmed separately.
2. The UAE-Malaysia DTT provides for a reduced rate of 10% where dividend payments are made from a UAE entity to a Malaysian entity. The DTT, however, provides for a lower rate of 0% where payments are made from a Malaysian entity to a UAE entity.
3. Government institutions only. There is a new UAE-Russia DTT signed in February 2025.