Tax in UAE | Guide To Expat Taxes UAE

The content in this tax guide is provided by EY.

Going to or leaving the UAE

Local tax information for the United Arab Emirates.
Local information	Details
Tax authority	Ministry of Finance
Website	www.mof.gov.ae/en
Tax year	Not applicable
Tax return due date	Not applicable
Is joint filing possible	Not applicable
Are tax return extensions possible	Not applicable

Local tax information for the United Arab Emirates.
Local information	Tax authority
Details	Ministry of Finance

Local information	Website
Details	www.mof.gov.ae/en

Local information	Tax year
Details	Not applicable

Local information	Tax return due date
Details	Not applicable

Local information	Is joint filing possible
Details	Not applicable

Local information	Are tax return extensions possible
Details	Not applicable

2022 income tax rates


Taxable income band	National income tax rates
Not applicable	Not applicable


Taxable income band	Not applicable
National income tax rates	Not applicable

No personal taxation currently exists in the United Arab Emirates (UAE).

Laws covering corporate tax exist in all the individual emirates but, in practice, taxes are enforced only on the following entities:

foreign oil and gas producing companies (oil/hydrocarbon companies with actual production in the Emirates) at rates set forth in their government concession agreements (which are confidential)
branches of foreign banks at rates fixed by decree or in agreements with the Rulers of the Emirates where the banks operate

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Additional information

No capital gains tax is imposed in the UAE. Capital gains are taxed as part of regular business profits. The UAE does not impose net worth tax or estate and gift tax.

Value-added tax at a rate of 5% was introduced in the UAE from January 2018.

The UAE does not impose social security taxes on foreign nationals. UAE-national employees and nationals from the other Gulf Cooperation Council (GCC) countries contribute to retirement and pension funds in accordance with specific regulations.

In February 2022, a new Labor Law came into force in the UAE, introducing several changes, including updates on end-of-service benefits.

Foreign employees are entitled to end-of-service beneﬁts, in accordance with the legislation regulating pensions and social securities. The benefits are calculated in accordance with the following rules:

A foreign employee who has completed a year or more of continuous service is entitled, at the end of his or her service, to the following benefits calculated according to the basic wage:
A wage of 21 days for each year of the ﬁrst ﬁve years of service
A wage of 30 days for each year exceeding such period
A foreign employee shall be entitled to a beneﬁt for parts of the year in proportion to the period spent at work, provided that he or she completed one year of continuous service.
Unpaid days of absence from work are to be included in the calculation of the service term.
The end-of-service beneﬁts are calculated according to the last basic wage of the employee.
The end-of-service beneﬁts for foreign workers cannot exceed two years’ wages.
If the employee owes any money to the employer, the employer may deduct the amount from the employee’s gratuity.

The employer shall pay to the employee, within 14 days from the end date of the contract term, his or her wages and all other entitlements.

The Dubai International Financial Centre (DIFC) decided to move away from the-end of-service benefit and introduced the DIFC Employee Workplace Savings (DEWS) Plan, which is a progressive end-of-service benefit. This benefit was introduced within the DIFC to restructure the currently defined employee benefit plan into a funded and professionally managed, defined contribution plan.

Employers need to make a mandatory contribution into the plan, and the minimum contribution amounts depend on the length of service.

The minimum contribution rates as a percentage of basic salary are the following:

For members with less than five years of service: 5.83%
For members with five years of service or more: 8.33%

Each member’s tenure is calculated from the day they start employment.

While DEWS is a mandatory scheme, if a DIFC employer wishes to use a scheme other than the framework DEWS plan, the company can apply to the Dubai International Financial Center Authority (DIFCA) for a Certificate of Compliance in order for a different scheme to be certified as a Qualifying Scheme. A Certificate of Compliance is issued by the DIFCA only if the scheme satisfies certain key requirements of a Qualifying Scheme.

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The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

Tax in the United Arab Emirates

Going to or leaving the UAE

2022 income tax rates

Expat tax guides

Additional information

Other taxes

Social security

End-of-service benefits

How can I open an offshore bank account?

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