🇦🇪 United Arab Emirates tax

• Limit: AED 1M/yr ≈ $272k

The UAE does not levy income tax on individuals; VAT is 5%. Individuals running a business in the UAE pay corporate tax only if business turnover exceeds AED 1 million (≈ $272,000) in a calendar year. ^{1 2 3 4}

Taxed on

Individual wages, personal investment income and real estate investment income are outside corporate tax; business turnover of natural persons is the corporate-tax test.

Who it applies to

• Natural persons are taxed under the corporate tax law only if they conduct a business or business activity in the UAE and total turnover exceeds AED 1 million (≈ $272,000) in the calendar year.

Exclusions

• Wages, personal investment income and real estate investment income are not business activities for this test.

Limits

• AED 1,000,000 a year (≈ $272,000) · Business turnover of a natural person above which corporate tax registration and tax apply (calendar year).

Days in the country

• At least 183 days in 12 consecutive months · Physical presence in the UAE; days need not be consecutive. Alternative tests: usual place of residence and centre of financial and personal interests in the UAE; or 90 days or more with UAE nationality/valid residence permit/GCC nationality plus a permanent place of residence or employment or business in the UAE.
• At least 90 days in 12 consecutive months · Applies to UAE nationals, holders of a valid residence permit, or GCC nationals who also have a permanent place of residence in the UAE or work or carry on business there.

Tax residence

The UAE levies no income tax on individuals, so wages, investment income and foreign-source income of an individual are not charged; only business turnover above AED 1 million (≈ $272,000) is within corporate tax. Tax residency is defined by Cabinet Decision No. 85 of 2022 (in force 1 March 2023): usual and primary residence plus centre of financial and personal interests, or 183 days, or 90 days with the stated additional links, in a 12-month period.

Visas

Holding a residence permit does not by itself determine tax residency; presence and ties do.

Other taxes

VAT 5% on goods and services; excise tax on specified goods; corporate tax 9% on taxable business income above AED 375,000 (≈ $102,000).

Checked against official sources on 11 Oct 2026Change log

• On: Taxable income (accounting net profit adjusted under the corporate tax law)
• Limit: AED 375k/yr ≈ $102k

Resident companies and business-owning individuals pay 9% corporate tax on taxable income above AED 375,000 (≈ $102,000); 0% applies to the first AED 375,000 (≈ $102,000). Small Business Relief treats eligible businesses with revenue up to AED 3,000,000 (≈ $817,000) as having no taxable income, for tax periods ending on or before 31 December 2029. ^{5 6 7 8 9}

Taxed on

Taxable income (accounting net profit adjusted under the corporate tax law).

Who it applies to

• Companies incorporated or effectively managed in the UAE, free zone persons and natural persons with business turnover above AED 1 million (≈ $272,000) are taxable persons and must register.
• Small Business Relief: resident person elects for each tax period; revenue of AED 3,000,000 (≈ $817,000) or less in the current and all previous tax periods; available for tax periods starting on or after 1 June 2023 and ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026).

Exclusions

• Small Business Relief is not available to a Qualifying Free Zone Person or to a member of a multinational group with consolidated revenue above AED 3.15 billion (≈ $858,000,000).

Limits

• AED 375,000 a year (≈ $102,000) · 0% band of taxable income under the standard regime.
• AED 3,000,000 a year (≈ $817,000) · Revenue ceiling for Small Business Relief in the current and all previous tax periods.

Tax residence

Returns and payment are due within 9 months of the end of the tax period.

Visas

Corporate tax status is independent of visa or residence permit.

Other taxes

VAT 5%; employer payroll and social obligations are separate.

Checked against official sources on 12 Oct 2026Change log

• Limit: AED 1M/yr ≈ $272k

The UAE levies no income tax on individuals; foreign-source salary, investment and rental income of an individual is outside Corporate Tax. A natural person running a business in the UAE is subject to 9% Corporate Tax (0% on the first AED 375,000 (≈ $102,000) of taxable income) only once business turnover exceeds AED 1,000,000 (≈ $272,000) in a calendar year. ^{11 12 13 8 9 14}

Taxed on

Taxable income of a Business or Business Activity conducted in the UAE by a natural person whose turnover from it exceeds AED 1,000,000 (≈ $272,000) in a Gregorian calendar year; wage, personal investment income and real estate investment income are out of scope and not counted toward the threshold.

Who it applies to

• Applies to a resident or non-resident natural person conducting a Business or Business Activity (e.g. freelancing or sole proprietorship on own account) in the UAE.
• Small Business Relief (simplified compliance, revenue up to AED 3 million (≈ $817,000)) may be elected for tax periods commencing on or after 1 June 2023 and ending on or before 31 December 2029, per Ministerial Decision No. 131 of 2026.
• Freelance consultancy for a foreign client on the person's own account is business income, not wage, and counts toward the AED 1 million (≈ $272,000) turnover (FTA guide example).

Exclusions

• Wage (employment income) is not subject to Corporate Tax and not counted toward the AED 1 million (≈ $272,000) threshold.
• Personal investment income and real estate investment income are out of scope regardless of amount.
• Turnover not exceeding AED 1,000,000 (≈ $272,000) in the calendar year: no Corporate Tax registration or payment on that business income.

Limits

• AED 1,000,000 a year (≈ $272,000) · Turnover from a Business or Business Activity conducted in the UAE by a natural person; Corporate Tax applies only if exceeded.
• AED 375,000 a year (≈ $102,000) · 0% rate band of taxable income; 9% applies to taxable income above it.
• AED 3,000,000 a year (≈ $817,000) · Revenue ceiling for Small Business Relief (simplified compliance), claimable for tax periods ending on or before 31 December 2029.

Days in the country

• At least 183 days in 12 consecutive months · Physical presence in the UAE makes a natural person UAE tax resident under Cabinet Decision No. 85 of 2022.
• At least 90 days in 12 consecutive months · Alternative residence test for UAE/GCC nationals or holders of a valid UAE residence permit who also have a permanent place of residence or a business in the UAE.

Tax residence

Tax residence (183-day test, or 90-day test with additional conditions) is needed for a UAE tax residency certificate and treaty use; it does not create personal income tax. The UAE does not tax individuals on foreign-source income because it levies no personal income tax.

Visas

Residence permit holders and visitors alike are outside personal income tax; a residence permit is one limb of the 90-day residence test. A natural person on a visit visa who works on own account is treated as conducting a business in the UAE (FTA example).

Other taxes

5% VAT on goods and services applies; excise tax applies to specified goods; corporate tax applies to entities and qualifying natural-person businesses.

Checked against official sources on 12 Oct 2026Change log