United Arab Emirates
Dubai
Ernst & Young Street address:
Mail address:
P.O. Box 9267
ey.com/globaltaxguides
ICD Brookfield Place
Al Mustaqbal Street
Dubai Dubai International Financial Centre
United Arab Emirates Dubai
United Arab Emirates
Executive contact
Xavier Delaunay
Immigration contact
Roman Gusev
+971 (56) 406-1072
Email: xavier.delaunay@ae.ey.com
+973 3365-1121 (resident in Manama, Bahrain) Email: roman.gusev@bh.ey.com
A. Income tax
There is no personal income tax in the United Arab Emirates (UAE). Individuals conducting business activities in the UAE may be subject to UAE corporate tax.
Tax residency. The UAE issued Cabinet Decision No. 85 of 2022 on determining tax residency under domestic legislation that came into effect on 1 March 2023.
An individual is considered a UAE tax resident under domestic legislation if any of the following circumstances exist:
• He or she has been physically present in the UAE for 183 days or more within any consecutive 12-month period.
• He or she has been physically present in the UAE for 90 to 182 days within any consecutive 12-month period, is a Gulf Cooperation Council (GCC) national or holds a valid UAE residence permit, and meets the following conditions:
He or she has a permanent place of residence in the UAE. He or she carries on employment or business in the UAE.
• He or she has been physically present in the UAE for less than 90 days in any consecutive 12-month period and meets either of the following conditions:
His or her usual or primary place of residence and the center of his or her financial and personal interests are in the UAE.
The individual meets the conditions and criteria determined by a decision from the Ministry of Finance.
It is possible to apply for a Tax Residency Certificate in the UAE confirming the tax residency of the individual (a Tax Residency Certificate based on UAE domestic legislation and, if the conditions are met, a Tax Residency Certificate for purposes of double tax treaty application).
B. Other taxes
No capital gains tax is presently imposed in the UAE. Capital gains are taxed as part of regular business profits.
The UAE does not impose net worth tax, inheritance/estate tax or gift tax.
C. Social security
UAE nationals. UAE nationals working in the public and private entities are subject to the UAE social security system of the Emirate in which the employer is registered.
Employer registered in Abu Dhabi. Monthly contributions in Abu Dhabi are calculated on the salary specified in the employment contract with a minimum of AED6,000 and a maximum of AED100,000. The following are the applicable rates.
* The government’s contribution only applies if the individual has entered the Abu Dhabi workforce before 1 December 2023; otherwise, if they have not been registered and contributed previously to such date, the employee contribution rate is 11%.
Employer registered in one of the other Emirates. Monthly contributions for individuals who joined the workforce before 1 October 2023 are calculated based on the salary stated in the employment contract up to a maximum of AED50,000. The following are the applicable rates.
Monthly contributions for individuals who joined the workforce after 1 October 2023 are calculated based on the salary stated in employment contract up to a maximum of AED70,000. The following are the applicable rates.
* For employers in the private sector, the government bears 2.5% of the employer contributions for UAE nationals with a remuneration less than AED20,000 to encourage entities to employ UAE nationals.
GCC (non-UAE) nationals. GCC (non-UAE) nationals will continue to be subject to their home country social security system while working in the UAE based on the GCC Unified Law of Insurance Protection Extension passed by the Supreme Council of the GCC. Consequently, the home country social security rates and caps apply.
Non-GCC nationals. Non-GCC nationals are not subject to the UAE social security scheme. However, employees are entitled to receive an end-of-service benefit upon termination of their tenure.
End-of-service benefits. Non-GCC national employees working in the private sector are entitled to an end-of-service benefit if
F. Temporary permits
All foreign nationals wishing to visit the UAE on business must have a valid visa to enter the UAE, with the exception of nationals of GCC countries. Foreigners, depending on their nationality, may enter the UAE for business purposes under a pre-arranged visit visa or visa on arrival. In addition, transit visas of up to 96 hours are possible.
Passport holders from certain jurisdictions (see list below) do not need to apply for a visa in advance. On entry, they receive a free visa on arrival enabling them to stay in the UAE for an allowable period. The only documentation required for such individuals is their passport, which must have a validity of at least six months from the date of entry.
A paid 14-day visa on arrival can be granted along with a preapproval from the UAE immigration authorities to Indian nationals who hold a visa issued by the European Union (EU), the United Kingdom or the United States. The EU, UK or US visa must be valid for a minimum of six months at the time of arrival in the UAE. The EU, UK or US visa must be valid for a minimum of six months at the time of arrival in the UAE.
Citizens of the following jurisdictions are granted a single-entry, 30-day free visa on arrival.
Andorra Ireland New Zealand
Australia Japan Singapore
Brunei Darussalam Kazakhstan Ukraine
Canada Macau SAR United Kingdom
China Mainland Malaysia United States
Hong Kong Mauritius Vatican City
SAR Monaco
Citizens of the following jurisdictions are granted a multipleentry, 90-day free visa on arrival, which is valid for six months from the date of issuance.
Argentina Germany Peru
Austria Greece Poland
Bahamas Honduras Portugal
Barbados
Hungary Romania
Belgium Iceland Russian
Brazil Italy Federation
Bulgaria Kiribati San Marino
Chile Korea (South) Serbia
Colombia Latvia Seychelles
Costa Rica Liechtenstein Slovak Republic
Croatia Lithuania Slovenia
Cyprus Luxembourg Solomon Islands
Czech Republic Maldives Spain
Denmark Malta St. Vincent and El Salvador Montenegro the Grenadines
Estonia Nauru Sweden
Finland Netherlands Switzerland
France Norway Uruguay
Georgia Paraguay
Individuals holding Mexican passports are eligible for a multiple-entry 180-day visit visa, which is valid for six months from the date of issuance.
Business activities allowed under visas on arrival or pre-arranged visit visas are generally restricted to training, conferences, meetings, seminars and similar activities. The above list may change slightly from time to time, so it is therefore recommended that the applicability of the free visa on arrival be confirmed with the local UAE representative or chosen airline prior to travel. In addition, certain Free Zones require a temporary access pass to be provided by the host entity to the business visitor in addition to the pre-arranged visit visa or visa on arrival. Some Free Zones allow limited work activities with such a temporary access pass, while in others it is used as a gate pass to the premises of the Free Zone.
G. Remote working visa
The UAE remote working visa enables foreigners to work remotely for a company abroad without a local employment contract and allows the applicant to live in the UAE. The visa is valid for one year and allows the sponsoring of dependents.
The following are key considerations regarding this visa:
• The remote working visa does not allow foreign nationals to perform any UAE-related work or services or work for an entity carrying out business in the UAE.
• All employment arrangements, such as payroll, must remain abroad and remote work activity must be performed from neutral locations, such as a residence address or hotel.
• To qualify for the program, a foreign national must earn a minimum remuneration of USD3,500 net per month.
• Certain documentation requirements must be met for the approval to be granted.
• Once the main applicant has obtained the remote working visa, he or she can sponsor dependents to apply for a residence permit, the validity of which will be one year.
H. Work and residence permits and self-employment
Companies wishing to sponsor foreign national employees must apply for employment and residence permits for the individuals, unless they are eligible for a non-sponsored labor or Free Zone identification card. Companies must be eligible to sponsor foreign nationals and have available quota. For Mainland UAE companies, emiratization (local UAE national hiring quotas) may also be applicable depending on the skilled talent headcount and the business activity or industry. Emiratization is currently not applicable for UAE Free Zone companies.
For companies located in Mainland UAE, applications go through the Ministry of Human Resources and Emiratization (MoHRE) and the immigration authority.
The MoHRE is a federal UAE authority governing all emirates whereas the immigration authority depends on the governing UAE emirate. For example, in Dubai the MoHRE is the same work permit approval governing authority as all in the other emirates and the immigration authority is the General Directorate of Residency and Foreigners Affairs, whereas in Abu Dhabi, the immigration authority is the Federal Authority for Identity, Citizenship, Customs & Port Security.
would need to obtain for the individual a separate work authorization document in the form of a non-sponsored labor identification card.
The validity of the work authorization will vary from one to five years subject to the issuing jurisdiction. It is renewable as per the employment contractual terms.
It is a grey area with respect to whether Golden Visa holders looking to work remotely for a company outside the UAE can do so. Therefore, advice should be sought on a case-by-case basis to determine the appropriate visa for the intended activity.
Golden Visa eligibility criteria. There are various routes to qualify for applying for a UAE Golden Visa, such as the following:
• Investors who purchase a property in the UAE worth at least AED2 million or one or more off-plan properties worth at least AED2 million from approved local real estate companies, or those who take loans from authorized banks in the UAE to purchase a property in the country
• Highly skilled professionals who earn a minimum monthly salary of AED30,000 and hold a bachelor’s degree (or its equivalent), relevant work experience, a UAE employment contract and a job at the Occupational Level 1 or 2 as defined by the MoHRE
• Entrepreneurs who meet either of the following conditions: They are owners or partners of start-up enterprises registered in the UAE as small and medium enterprises that are valued by an auditor in the UAE as having an enterprise value that is not less than AED500,000. They secured approval to establish a start-up enterprise in the UAE from a business incubator, the Ministry of Economy or local authorities.
• Individuals with exceptional talent (for example, inventors and innovators) in fields such as culture, art, sports and digital technology, who hold an approval certificate or a recommendation letter issued by local authorities
• Scientists and researchers with high-level achievements in their field who hold a recommendation letter issued by the Emirates Scientists Council and a PhD or a Master’s degree in engineering, technology, life sciences or natural sciences from one of the highest-ranked universities globally
• Outstanding (that is, high-performing) students and graduates who graduated from a secondary school or university in the UAE or one of the 100 highest-ranked universities globally
• Humanitarian pioneers (for example, distinguished members of international and regional organizations or public benefit organizations, recipients of prestigious awards in humanitarian fields and distinguished volunteers or sponsors of humanitarian efforts)
Golden Visa benefits. The Golden Visa is self-sponsored. Therefore, there is no need for a company/employment sponsor.
Golden Visa holders may sponsor their family members (that is, spouse, children regardless of age and parents). They may stay outside the UAE for a continuous period of up to one year, and they may sponsor unlimited number of domestic helpers.