Straight answers to the questions we hear most about UAE taxation.
Does the UAE have personal income tax?+
No. The UAE does not levy personal income tax on salaries or wages, for citizens or foreign residents. VAT, Corporate Tax, and Excise Tax still apply to specific transactions and businesses. See our
full explainer.
Do I still owe tax in my home country while working in the UAE?+
Possibly. Some countries, notably the US, tax based on citizenship rather than residency, meaning citizens may still owe tax on worldwide income regardless of where they live. Always check your home country's specific rules on foreign income and tax residency.
Do freelancers need to register for VAT?+
Only once taxable turnover exceeds AED 375,000 per year, at which point registration is mandatory. Voluntary registration is available above AED 187,500. See our
VAT Calculator.
Is the End of Service Gratuity taxable?+
There's no personal income tax in the UAE, so the gratuity itself isn't taxed locally. Depending on your home country's rules, you may still need to declare it as income there.
What's the difference between mainland and free zone company taxation?+
Mainland companies are subject to standard Corporate Tax rules. Free zone companies can potentially benefit from a 0% rate on qualifying income if they meet specific substance and activity requirements as a Qualifying Free Zone Person — non-qualifying income is still taxed at the standard rate.
Do small businesses have to pay Corporate Tax?+
The first AED 375,000 of taxable income is always taxed at 0%. Businesses with revenue below AED 3,000,000 can also elect for Small Business Relief, treating their taxable income as effectively nil, subject to conditions. See our
Corporate Tax explainer.
Do I need a Tax Residency Certificate?+
Not for everyday purposes, but a Tax Residency Certificate can be useful to prove UAE tax residency to your home country's tax authority, particularly under a Double Taxation Agreement.