The United Arab Emirates has long been recognized for its dynamic economy and commitment to providing a high standard of living for its citizens and residents. To support this vision, the UAE has developed a comprehensive tax framework administered by the Federal Tax Authority (FTA).

At Amani AlKindi Advocates & Legal Consultants L.L.C, our team of tax lawyers in Dubai provides expert legal guidance to individuals and businesses navigating the UAE’s evolving tax landscape. We help our clients understand their tax obligations, avoid double taxation, and ensure full compliance with UAE tax laws and international standards.

The UAE currently applies several key forms of taxation:

- Value Added Tax (VAT)
- Excise Tax
- Corporate Tax
- Tourism Tax

Our legal team provides detailed guidance and representation for each category, ensuring clients are well-informed and legally protected.

Implemented on January 1, 2018, the UAE’s Value Added Tax (VAT) system represents an indirect tax levied on most goods and services at each stage of the supply chain. The standard VAT rate is 5%, and while businesses collect and remit VAT, the final consumer bears the cost.

VAT was introduced to diversify the UAE’s economy, creating a sustainable source of revenue to support public services and reduce dependency on oil income.

- Mandatory registration threshold: AED 375,000
- Voluntary registration threshold: AED 187,500

Certain categories; including real estate, vacant land, public transportation, and select financial services; are exempt from VAT.

Our firm assists clients in registering with the FTA, filing returns, managing audits, and ensuring proper VAT compliance to avoid penalties and errors in reporting.

Introduced in late 2017, the UAE’s Excise Tax is designed to reduce the consumption of goods harmful to health or the environment. It applies to specific categories of products, with tax rates depending on the type of goods:

Tax Rate

Cigarettes and tobacco products / 100%

Energy drinks / 100%

Carbonated and sweetened beverages / 50%

Our tax lawyers advise companies on excise compliance, product classification, and registration under FTA guidelines, helping clients avoid non-compliance risks.

The UAE Corporate Tax Law — Federal Decree-Law No. 47 of 2022 — was enacted on December 9, 2022, establishing the legal framework for federal corporate taxation. The law applies to financial years beginning on or after June 1, 2023.

Corporate Tax is a direct tax levied on the net income of companies and businesses, aligning the UAE with international best practices while maintaining its reputation as a competitive global investment hub.

- The law supports the UAE’s strategic goals of diversification and economic growth.
- The system reflects internationally recognized tax principles and ensures compliance with global standards.
- The UAE benefits from a wide network of Double Taxation Avoidance Agreements (DTAAs), reducing tax exposure for foreign investors.

Free zone companies are treated as taxable persons under the law but may qualify for a 0% Corporate Tax rate on qualifying income if they meet specific conditions.

Non-residents without a permanent establishment in the UAE may be subject to withholding tax (0%) on certain cross-border payments, such as dividends, interest, and royalties.

Corporate tax is self-assessed and calculated based on the taxpayer’s accounting income (net profit or loss) adjusted for exempt income and non-deductible expenses. Taxpayers must file annual returns with the Federal Tax Authority and maintain detailed records to substantiate their filings.

- Tax registration and compliance
- Corporate tax planning and structuring
- Financial reporting and audits
- Tax dispute resolution and FTA representation

The UAE imposes tourism-related taxes on hospitality and leisure establishments, including restaurants, hotels, hotel apartments, and resorts. These taxes help support the tourism infrastructure that defines the UAE’s global appeal.

- 10% on room rates
- 10% service charge
- 10% municipality fee
- 6–10% city tax
- 6% tourism fee

Our legal team advises hospitality clients on regulatory compliance, tax structuring, and reporting, ensuring adherence to all municipal and tourism authority regulations.

At Amani AlKindi Advocates & Legal Consultants L.L.C, we are committed to promoting tax literacy, compliance, and transparency across the UAE’s evolving fiscal framework. Our tax law experts provide clients with the knowledge and strategies needed to:

- Prevent double taxation and unnecessary liabilities
- Ensure compliance with the Federal Tax Authority (FTA) regulations
- Optimize financial efficiency within UAE and international jurisdictions

With our specialized tax consultants and lawyers, we help both individuals and corporations achieve peace of mind knowing their tax affairs are managed lawfully, efficiently, and strategically.

Terms and conditions apply.