Is Dubai Really Tax-Free?+
For personal income — salaries, dividends, capital gains — yes, still. For business, no longer: Corporate Tax at 9% arrived for financial years from June 2023, and VAT at 5% has run since 2018. Dubai is now low-tax with real rules, not no-tax with none.
Who Has To Pay UAE Corporate Tax?+
Every business operating in the UAE — mainland and free zone alike — must register. Tax applies at 9% on taxable income above AED 375,000. Even individuals pay it on business activity once their turnover exceeds AED 1 million in a year.
What Does The AED 375,000 Threshold Mean?+
The first AED 375,000 of taxable income is taxed at 0% — for everyone, every year. Only the excess pays 9%. It's a slice, not a cliff: at AED 1m of profit, the bill is 9% of 625,000 = AED 56,250, an effective rate of 5.6%.
What Is Qualifying Free Zone Income?+
The income a free zone company can still enjoy at 0% — broadly, trade with other free zone persons and certain listed activities, with substance requirements and a de minimis limit on the rest. Fail the test and you're at 9% on everything for five years. This is the highest-stakes analysis in UAE tax.
What Is Small Business Relief?+
An election that treats you as having no taxable income while revenue stays at or below AED 3 million (available for periods up to the end of 2026). It's genuinely generous — but it's an election with conditions, and free zone persons claiming the 0% regime can't combine the two.
When Do I Register For VAT In The UAE?+
Mandatory when taxable supplies pass AED 375,000 in the last 12 months (or will in the next 30 days); voluntary from AED 187,500. Registration is via the FTA's EmaraTax portal; late registration carries a fixed penalty.
When Are VAT Returns Due?+
Within 28 days of each tax period's end — quarterly for most businesses, monthly for larger ones, as the FTA assigns. Payment travels with the return, and the penalty meter starts the day after.
How Is Gratuity Calculated In The UAE?+
21 days of basic salary per year for the first five years of service, 30 days per year after, capped at two years' pay. Allowances don't count; unpaid leave days don't accrue. Use the calculator above for your number.
Do Freelancers Pay Tax In Dubai?+
A freelancer with a license pays Corporate Tax only if annual turnover from business exceeds AED 1 million — and then only at 9% above the 375,000 profit threshold. Salaried income on the side remains untaxed. Most freelancers owe registration before they owe money.
When Is The Corporate Tax Return Due?+
Nine months after your financial year end — a December year-end files by the following September 30. Registration came first, with its own deadlines and a AED 10,000 late-registration penalty that surprised thousands of companies.
What Are UAE Transfer Pricing Rules?+
Arm's-length pricing is now law for transactions with related parties and connected persons — including your own salary from your company. Disclosure forms file with the return; master/local files apply above size thresholds. Paying yourself "whatever's left" is no longer a strategy.
What Is WPS?+
The Wage Protection System — salaries must flow through approved channels in a prescribed file format, proving your people are paid on time. Miss it and fines arrive and new work permits stop. It's payroll plumbing, and it has to be perfect every month.
