Dubai's business tax landscape — simpler and lighter than most.
Businesses in Dubai are subject to corporate tax at 9% on profits exceeding AED 375,000, VAT at 5% on most goods and services, and customs duty at 5% on imports (with many free zone exemptions). There is no personal income tax and no capital gains tax, and free zone companies may qualify for 0% corporate tax if they meet the qualifying conditions.
Emirates Business Lounge helps businesses understand their tax obligations and includes VAT registration in their setup packages.
One of the biggest reasons entrepreneurs choose Dubai is the tax environment — but there are still a few things you need to know. Let's keep it simple.
First, there's no personal income tax in the UAE. What you earn personally, you keep. There's also no capital gains tax.
On the business side, there's a corporate tax of nine percent, but only on profits above three hundred and seventy-five thousand dirhams. Anything below that threshold is taxed at zero. There's also VAT at five percent on most goods and services, and a five percent customs duty on imports, though many free zone activities are exempt.
And here's a nice detail: qualifying free zone companies can benefit from a zero percent corporate tax rate on their qualifying income.
We help you understand exactly which of these apply to your business, and we include your VAT registration as part of your setup. If you want clarity on your specific tax position, just ask.