zuletzt aktualisiert: Dezember 2025
The most important facts in a nutshell:
- Die Körperschaftsteuer beträgt 9 %: Du musst 9 % Steuern auf Gewinne deiner Firma über AED 375.000 (ca. 95.000 €) pro Jahr abführen. Bedeutet weiterhin 0 % Steuer unter AED 375.000 Nettogewinn pro Jahr.
- Buchhaltungspflicht: Du musst deine Buchhaltung gemäß den IFRS-Standards führen. Selbst wenn du nicht unter die Besteuerung fällst, musst du den Nachweis einer ordnungsgemäßen Buchführung erbringen. Das bedeutet einen erhöhten administrativen Aufwand + Strafen bei Nichtbeachtung.
- Also Freezone Companies sind betroffen. Unter bestimmten Bedingungen kann deine Freezone ausgeschlossen werden. Lass dich hierzu individuell von uns beraten.
- Anti-Missbrauchregeln: Die absichtliche Trennung von Geschäftsaktivitäten, um einen Steuervorteil zu erzielen, wird gemäß den allgemeinen Anti-Missbrauchsregeln des CTL als unzulässig betrachtet.
- Expertentipp: Anpassung deines Geschäftsjahres, um Steuerlast hinauszuzögern, findest du am Ende des Artikels.
What taxes do I have to pay in Dubai?
Dubai is known for its favourable tax rates and therefore attracts many international companies. Here you will find an overview of the tax rates in Dubai for private individuals and companies:
- No income taxThere is no income tax for individuals in the UAE. This applies to both citizens and foreign residents.
- Value added tax (VAT): VAT was introduced in the UAE in January 2018. The standard tax rate is 5 % and is applied to most goods and services.
- Corporate income tax: Although there is no income tax for individuals, a corporate income tax has been levied since June 2023. The standard tax rate is 9 % on taxable income above AED 375,000. This applies to companies but not individuals.
- Property tax: Dubai levies a one-off property tax on the purchase of real estatewhich is known as the "registration fee" and amounts to 4 % of the purchase price of the property.
- Tourism tax: Hotels and other tourist facilities in Dubai levy a tourism tax, which must be paid by guests.
- Tolls (Salik): Dubai has an electronic toll system called Salik. Charges are levied automatically when vehicles pass through certain toll booths.
- Stamp duty or other taxes: Other specific taxes and duties may apply to certain services or transactions.
So if you are harbouring the plan to deregister from Germany to want to be in Founding a company in Dubai want to optimise your taxes, then you should consider the taxes mentioned above. If you are leaving Germany as an active entrepreneur, our contribution to the Exit taxation be of further interest to you.
Summary of the most important taxes in Dubai:
| Tax type | details |
|---|---|
| Income tax | No income tax for private individuals |
| Value added tax (VAT) | 5 % on goods and services since January 2018 |
| Corporate income tax | Seit Juni 2023: 9 % auf Gewinne über 375.000 AED (ca. 95.000 €) |
| Customs duties | Standard 5 %, exceptions for certain goods |
| Property registration fee | One-off fee of 4 % when buying a property |
| Tourism taxes | Various fees such as Tourism Dirham and Municipality Fee |
| Social security contributions | Only mandatory for local citizens |
The new corporate tax system for companies in Dubai: features and principles
Dubai is known for its business-friendly environment and the Vision 2021 programme, which aims to make the emirate the world's leading business hub. An important component of this plan is the new Corporate tax system (CT), which in the course of the year 2022 introduced and will be fully implemented from June 2023. In this article, we will give you an overview of the main features and principles of the system and what you should consider with an existing business in Dubai.
From 1 June 2023 The United Arab Emirates (UAE) has introduced the new corporate tax called "Corporate Tax" entered into force.
If your company is based in the UAE, you will have to pay the new tax once your profits reach a certain threshold. All legal forms are affected.
ATTENTION: In this article, we will show you various ways in which your company can avoid the tax or only have to pay it at a later date.
If you then want to know exactly whether your company falls under this regulation or whether you are thinking about emigrating and setting up a Start a business in Dubaiplease get in touch with us to see how we can help you.
Dubai is known for its tax-friendly policies. Companies operating in Dubai benefit from low tax rates and a simple tax system. However the government of Dubai has now introduced a new corporate tax system to raise revenue and diversify the economy.
Corporate income tax 2025 in the United Arab Emirates at a glance:
- The new corporation tax of AED 9 % has been in force since 1 June 2023. An allowance of AED 375,000 (approx. € 100,000) profit applies. However, the specific rules for salaries and deductions have not yet been fully clarified.
- An average salary of AED 60,000 (€15,000) per month for a General Manager in Dubai is likely to be tax deductible, assuming it is in line with market rates.
- For private individuals and Freezones in the UAE, there is a turnover allowance of AED 1 million (approx. € 250,000). No registration or reporting obligations are required up to this amount.
- Mainland companies and non-qualified Freezones can use the "Small Business Relief", which is valid until 2026 and provides for a turnover limit of AED 3 million (approx. € 750,000).
- Commercial corporate income tax does not apply to capital gains or dividends, even for holding companies incorporated in the UAE.
- For a Freezone to be exempt, three conditions must be met, relating to the nature of the activities, the prohibitions and the need for full value addition in the Freezone.
- The introduction of corporate income tax could have both advantages and disadvantages, depending on individual income and business model. The tax legislation could prove disadvantageous for some entrepreneurs if they are above the set turnover and profit thresholds.
Summary: The UAE has introduced a new corporate income tax of 9 % in 2023, with certain allowances and regulations. This could have both advantages and disadvantages for entrepreneurs and companies, depending on their specific circumstances.
Who is considered a taxable person in Dubai?
Under the new CT system, all companies operating in Dubai that are not registered in a free trade zone are liable to pay corporate income tax. This also applies to branches and subsidiaries of foreign companies. Companies in Freezones can in principle be exempted from corporate income tax provided they meet certain requirements.
Businesses operating in certain sectors, such as tourism, can also benefit from lower tax rates.
Dubai's new corporate tax system is intended to help diversify the country's economy and open up new sources of revenue. The government of Dubai plans to use the revenue from the corporate income tax for the development of infrastructure projects and the promotion of start-ups and small businesses.
Income from non-self-employed work: What needs to be considered?
The new CT system also includes income from non-self-employment, such as salaries and bonuses, in the calculation of the tax. The employee's marital status is also taken into account when determining the tax rates.
Workers in Dubai must therefore be prepared for higher taxes. However, the Dubai government will continue to pursue a tax-friendly policy to attract foreign investors and companies.
The introduction of the new corporate tax system (9%) and VAT (5%) introduced in 2018 are part of Dubai's broader strategy to diversify its economy and make it a leading business hub. Dubai also plans to invest in several areas over the next few years, including technology, renewable energy and artificial intelligence.
5% Value added tax (VAT) in Dubai
In Dubai, VAT has been a constant 5% since 2018. This indirect tax is levied on most goods and services, with exceptions for certain foodstuffs, educational services and healthcare services.
0% Income tax for employees and entrepreneurs
Dubai does not levy income tax on the personal income of employees or entrepreneurs. This is considered one of the biggest financial incentives for individuals wishing to work or do business in the United Arab Emirates. However, Dubai is introducing a corporate income tax in June 2023, which provides for a rate of 9 % on the net income of companies. Nevertheless, salaries and bonuses remain unaffected by this tax.
Special consumption taxes
In addition to VAT, Dubai has special excise duties on certain products such as tobacco products, alcoholic beverages and energy drinks. These taxes are aimed at curbing the consumption of harmful products and generating additional revenue for government projects.
Car tax in Dubai
There is no direct road tax in Dubai as in many other countries. Instead, there are fees for registration, annual renewals and salik (tolls), which are charged when driving on certain motorways. These costs are comparatively low and help to finance the emirate's state-of-the-art infrastructure.
Indirect taxes
In addition to the value-added tax and special consumption tax, other indirect taxes may apply in Dubai. These include fees for government-provided services and tolls (salik). Although these are not directly classified as "taxes", they have a similar financial impact on residents and businesses.
Taxation of multinational companies in Dubai
There are different methods of calculating the tax for international companies.
One method of calculating tax for international companies is known as "profit offsetting". This involves calculating the company's profits in each country and then totalling them. The tax is then applied to the total profit.
Another method is "profit splitting". Here, the company's profit is split between the various countries in which it operates. The tax is then applied to the profit made in Dubai.
Exemptions from tax liability in Dubai
There are certain exemptions from tax liability, for example for non-profit organisations and government institutions. There are also cases where income and profits of foreign companies are not taxed.
How is the tax base calculated for taxes in Dubai?
The assessment base for corporate income tax in Dubai is calculated on the basis of income earned by a company within the emirate. There are special rules for the assessment of assets and losses.
If a company operates in Dubai but also earns income in other countries, the income is usually split and taxed in each country. The Dubai tax is then applied to the portion of the income that was earned in Dubai.
What is a permanent establishment in Dubai?
A permanent establishment refers to foreign companies doing business or owning real estate in Dubai. If a company has such a branch, it must pay taxes and have a business address in Dubai.
However, there are also exceptions to this rule. For example, companies operating in a free trade zone are exempt from paying tax. Companies that are only temporarily active in Dubai also do not have to pay tax.
Taxation of income from the UAE (UAE-sourced income)
When a company earns income in Dubai, this income is generally taxed in Dubai. However, there are exceptions if the income is earned abroad or if the company operates in a free trade zone.
If a company operates in a free trade zone, the income is usually not taxed. However, if the company operates outside the free trade zone, it must have the income taxed in Dubai.
Taxable income in Dubai: A simple summary
Taxable income in Dubai includes all income earned by a person or company in Dubai. This includes income from business, rentals, capital gains and other sources of income. Taxable income is usually calculated on the basis of the net income remaining after deducting certain expenses such as business expenses and depreciation.
It is important to note that there is no income tax in Dubai. Instead, there is a corporate tax that only applies to companies. This tax is applied to the company's taxable income and amounts to 9 %.
Loss relief in the UAE: What needs to be considered?
Companies can deduct losses from previous years from their current income. However, there are special rules for calculating losses and profits, especially for international companies.
It is important to note that losses can only be offset up to a certain amount. If a company incurs losses in one year that exceed this amount, these losses can no longer be offset in subsequent years.
Tax groups in Dubai: definition and significance
Companies can form tax groups to obtain tax benefits. However, there are certain rules and requirements for the formation of tax groups.
To form a tax group, the companies usually need to be under common control and operate in the same industry. Forming a tax group can help reduce the tax burden of the companies by offsetting losses and profits within the group.
Withholding tax in Dubai: What is it?
Withholding tax refers to the tax that is deducted from an individual or company and paid directly to the Emirate. The withholding tax rules also apply to international companies operating or doing business in Dubai.
Withholding tax is usually levied on certain types of income such as interest, dividends and licence fees. The amount of withholding tax varies depending on the type of income and can be between 0 % and 10 %.
Managing companies in the UAE: tips and tricks
The tax authorities in Dubai are very efficient and use advanced technology to manage taxes and audit businesses. Here are some tips on how to best fulfil your tax obligations in Dubai.
- Make sure you complete all relevant tax forms and documents properly.
- Keep accurate records of your income and expenses.
- Work with an experienced tax advisor to ensure you are compliant with all tax regulations.
- Keep up to date with changes in tax regulations and adjust your business practices accordingly.
Here you can register yourself and your company for corporation tax: https://tax.gov.ae/en/emaratax.aspx
Transfer Pricing (TP): What is it and how does it work?
Transfer pricing is used to determine the value of goods and services between associated enterprises or companies in different countries. Transfer pricing can affect a company's tax liability and there are certain rules for its calculation and application.
It is important to note that transfer pricing must not be manipulated in order to reduce the tax burden. The tax authorities in Dubai are very strict about transfer pricing compliance and can impose heavy penalties if companies violate these rules.
How to avoid or delay corporate tax in Dubai
Dubai Corporate Tax Law Expert Tip:
By adjusting your company's financial year, you can delay the 9 % tax burden. In practice, this means that you do not have to pay corporation tax or keep IFRS accounts until the 2024 tax year.
This adjustment must be applied for with the competent authority and recorded in the Memorandum of Association.
Summary of the new corporate income tax in Dubai
Despite the introduction of the new tax, Dubai remains an attractive place to invest and do business due to its low tax rate and good infrastructure. We recommend that you find out about the new tax rules early and seek legal and tax advice if needed.
Frequently asked questions about taxation in Dubai
In this section, we answer some frequently asked questions about taxation in Dubai to provide you with further clarity and information.
Do I have to pay taxes in Dubai?
Dubai is known for its attractive tax-free environment. In general, individuals in Dubai do not pay income tax. In 2018, a VAT of 5 % was introduced on certain goods and services. In 2023, a corporate tax of 9 % was introduced for companies. This applies to income over AED 375,000 per year and can be avoided under certain conditions.
How does Dubai finance itself without taxes?
Dubai and the UAE have officially introduced a corporate income tax for companies of 9 % since 2023. In addition to the new tax revenue, Dubai is financed by fees for government services and revenue from business activities. These include fees for visa applications and renewals, fees for business licences and customs duties on imported goods. The oil sector is also an important source of revenue, although Dubai is less dependent on oil than other emirates in the United Arab Emirates. The Dubai government has invested heavily in non-oil sectors over the past decades, including tourism, property, retail and finance, to promote diversified and sustainable economic growth.
Dubai Corporate Tax Law 2023 - what is it?
The Dubai Corporate Tax Law 2023 relates to corporate taxation in Dubai, an emirate of the United Arab Emirates (UAE). The UAE introduced a federal corporate income tax in January 2022. The standard corporate tax rate is 9 % for companies with a net profit of AED 375,000 (approx. €95,000) or more per year. Companies with a net profit of less than AED 375,000 per year pay a tax rate of 0 %.
What taxes do I have to pay in Dubai?
- No income tax
- Value added tax (VAT)
- Corporate income tax
- Property tax
- Tourism tax
- Tolls (Salik)
- Stamp duty or other taxes
Is Dubai a tax haven?
Dubai is characterised by a tax system that definitely classifies it as a tax haven. The attractive tax regime, which does not levy income tax on personal or corporate income, is a strong incentive for investors and business people. These tax advantages are particularly relevant in a global environment where companies and individuals are increasingly looking for more efficient tax structures.
