The Economy of the UAE
Taxes, the Dirham and Business Rules
The UAE long had no income tax, introduced VAT in 2018 and corporate tax in 2023, and pegs the dirham to the US dollar.
A low-tax environment is changing slowly.
Historic zero tax
Individuals pay no income tax, one of its attractions.
New taxes
A 5 per cent VAT began in 2018 and a 9 per cent corporate tax in 2023.
Peg
The dirham is pegged at about 3.67 to the US dollar.
Ownership
Rules have been relaxed to allow foreigners full ownership of onshore companies.
A tax-free salary
A foreign professional's salary is paid without income tax.
Assuming there are no taxes at all
VAT and corporate tax now exist.
Key takeaways
- No personal income tax.
- VAT began in 2018.
- Corporate tax began in 2023.
- The dirham is pegged.
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