Introduction to
UAE tax planning guide

As an expat in the UAE, you’ll enjoy tax-free income, a high standard of living, and access to a multicultural community in one of the world’s most modern and fast-paced countries.



In this guide, we’ll walk you through everything you need to know about relocating to UAE from a personal tax perspective, including tax residency, double tax treaties and tax return obligations. 



TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.

TAX SYSTEM

HOW YOU’RE TAXED IN UAE

The UAE follows a zero taxation model. You will not pay tax on personal income sources.

Resident
Local Income
Foreign Income
Non-Resident
Local Income
Foreign Income
RESIDENCY

YOUR RESIDENT STATUS IN UAE

You’ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 182 days in the UAE during any 12 month period.

Vital interests

if you are present in the UAE on more than 90 days, have a home, visa and exercise work in the UAE during any 12 month period.

Home

if your main residence is located in the UAE during the tax year.

HIGHEST RATE

INCOME TAX IN UAE

Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is %.
Global comparison
56%
World highest
%
UAE
0%
World lowest
OTHER TAXES

PERSONAL TAXES IN UAE

Asset tax

Tax on property and share sales

Wealth tax

Tax on value of owned assets

Death tax

Tax on assets passed to heirs

Social tax

Tax to contribute to state welfare

 * It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
INTERNATIONAL TAX

DOUBLE TAXATION AGREEMENTS IN UAE

If you receive incomes overseas while you are living in the UAE, you may find the source country, as a starting point, continues to tax the income.

Double taxation agreements may remove the source countries taxing right and thus, enable you to receive incomes tax free globally.

At present, the UAE has 140 double taxation agreements signed.

Global comparison
140
World highest
UAE
0
World lowest
COMPLIANCE

TAX OBLIGATIONS IN UAE

What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 January and ends on 31 December.
What is the deadline to file tax returns and settle tax liabilities?
N/A tax return filing is not required in the UAE.
Do you need to make advance payments of tax?
N/A tax payment is not required in the UAE.