Tax Rights
Corporate tax, VAT, excise tax, and taxpayer rights under UAE federal tax legislation administered by the Federal Tax Authority (FTA).
Covered in this guide:
You pay no personal income tax in the UAE — salaries, freelance, investments, and rental income are all untaxed. Businesses face 5% VAT under Federal Decree-Law No. 8 of 2017 if turnover exceeds AED 375,000, and 9% corporate tax on profits above AED 375,000 under Federal Decree-Law No. 47 of 2022. The Federal Tax Authority runs everything through EmaraTax. Disputes follow a 40-business-day ladder under Federal Decree-Law No. 28 of 2022: FTA reconsideration, then the Tax Disputes Resolution Committee, then the Federal Court of Appeal.
Key Laws
Federal Decree-Law No. 47 of 2022
Corporate Tax Law
9% corporate tax on profits exceeding AED 375,000
Federal Decree-Law No. 8 of 2017
Value Added Tax Law
5% VAT on goods and services
Federal Decree-Law No. 28 of 2022
Tax Procedures Law
Registration, filing, audits, penalties, and taxpayer rights
Federal Decree-Law No. 7 of 2017
Excise Tax Law
Tax on tobacco, energy drinks, and sugary beverages
Corporate Tax Obligations
The UAE introduced a federal corporate income tax starting June 1, 2023 — a historic shift for a country long known for zero business taxation:Tax rate: The standard rate is 9% on taxable income excee...
VAT Registration & Compliance
The UAE charges Value Added Tax (VAT) at 5% on most goods and services — one of the lowest VAT rates in the world:Mandatory registration: If your taxable supplies exceed AED 375,000 in 12 months (or y...
Tax Residency Certificates
A Tax Residency Certificate (TRC) confirms that a person or company is a tax resident of the UAE. With no personal income tax and over 130 double taxation agreements, TRCs are a key tool for UAE resid...
Tax Audit Rights & Procedures
The Federal Tax Authority (FTA) can audit your tax records. As the FTA ramps up enforcement following the introduction of corporate tax, audits are becoming more common. You have rights during this pr...
Tax Refund Claims
In some situations, you can claim back VAT or other taxes you have paid:Business VAT refunds: If your input VAT (paid on purchases) exceeds your output VAT (collected on sales), you can claim a refund...
Excise Tax Obligations
The UAE imposes excise tax on specific goods considered harmful to health or the environment. This was the first federal tax introduced in the UAE (October 2017), even before VAT:Tobacco products: Tax...
Transfer Pricing Rules
Transfer pricing rules ensure that transactions between related companies are priced fairly. These rules are especially significant in the UAE given the prevalence of free zone structures where compan...
Tax Dispute Resolution & Appeals
If you disagree with a tax assessment or penalty from the FTA, you have the right to challenge it through a structured three-step process:Step 1 — Reconsideration: File a reconsideration request with...