In the UAE, companies are taxed according to local laws and tax legislation. Tax rates and applicable laws vary between different emirates, as there is a unified tax system at the state level and a local tax system in each emirate. In 2018, value added tax (VAT) was implemented in the UAE at a rate of 5% on specified goods and services. Income tax is imposed on companies in some emirates, such as Dubai and Abu Dhabi
In the UAE, companies are taxed according to local laws and tax legislation. Tax rates and applicable laws vary between different emirates, as there is a unified tax system at the state level and a local tax system in each emirate.
In 2018, value added tax (VAT) was implemented in the UAE at a rate of 5% on specified goods and services. Income tax is imposed on companies in some emirates, such as Dubai and Abu Dhabi, at a rate ranging between 0% and 50% depending on the economic sector and commercial activity.
There are also free zones in the UAE that provide tax benefits to companies, such as the Jebel Ali Free Zone in Dubai and the Jebel Ali Bay Free Zone in Ras Al Khaimah. Low or no taxes are imposed in these areas on companies resident there.
It is important to know that tax laws may change and develop over time, so it is recommended to consult with a local tax advisor or specialized lawyer to obtain updated and accurate information about taxes in the UAE.