United Arab Emirates tax rates
Middle East · headline statutory rates, 2025 · Very low tax
In United Arab Emirates, the top statutory personal income tax rate is 0% (no personal income tax) (ranked #88 of 96 countries), the headline corporate income tax rate is 9%, and the standard VAT/GST rate is 5%. Capital gains for individuals are treated as: No personal capital gains tax. Overall it reads as a very low tax jurisdiction on headline rates — no personal income tax and a low or zero corporate rate. These are statutory top rates, not the effective tax most people pay, and not tax advice — verify with United Arab Emirates's official tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
United Arab Emirates tax rates at a glance
| Tax | United Arab Emirates |
|---|---|
| Top personal income tax rate | 0% (no personal income tax) |
| Corporate income tax rate | 9% |
| Standard VAT / GST | 5% |
| Capital gains (individuals) | No personal capital gains tax |
| Employee social security | UAE/GCC nationals only (5% employee) |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Headline statutory rates (2025), compiled from PwC Worldwide Tax Summaries and cross-checked against OECD / Tax Foundation data. Rates change — confirm with the official tax authority before relying on them. This is not tax advice.
What these United Arab Emirates rates mean
The figures above are headline statutory rates: the top marginal personal income tax rate, the standard (not reduced) VAT/GST rate, and the main corporate rate. United Arab Emirates stands out because it charges no personal income tax on salaries, which is why it appears on lists of low-tax destinations for expats and remote workers. Consumption is taxed through VAT/GST at 5%, usually with reduced rates on essentials. Always layer in social security (UAE/GCC nationals only (5% employee)) and any local taxes for a full picture.
How United Arab Emirates ranks
| Measure | United Arab Emirates | Rank (1 = highest) |
|---|---|---|
| Top personal income tax | 0% (no personal income tax) | #88 of 96 |
| Corporate income tax | 9% | #87 of 96 |
| Standard VAT/GST | 5% | #84 of 87 |
Countries with a similar tax level to United Arab Emirates
The five countries closest to United Arab Emirates on overall headline tax level:
| Country | Top income tax | Corporate tax | VAT/GST |
|---|---|---|---|
| United Arab Emirates (this country) | 0% (no personal income tax) | 9% | 5% |
| Kuwait | 0% (no personal income tax) | 15% | No personal income tax; no VAT yet |
| Bermuda | 0% (no personal income tax) | 15% | No personal income tax; 15% corporate tax for large MNEs from 2025 |
| Qatar | 0% (no personal income tax) | 10% | No personal income tax; no VAT yet |
| Bahrain | 0% (no personal income tax) | 0% | 10% |
| Bahamas | 0% (no personal income tax) | 0% | 10% |
Frequently asked questions
What is the income tax rate in United Arab Emirates?
United Arab Emirates levies no personal income tax on salaries — the top rate is 0%. (Some local, payroll or social-security charges may still apply.) These are headline statutory rates as of 2025; verify with the official tax authority before relying on them.
What is the corporate tax rate in United Arab Emirates?
United Arab Emirates's headline corporate income tax rate is 9%, ranking #87 of 96 by headline corporate rate. Effective rates can differ with incentives, surcharges and local taxes. Verify with the official authority.
Does United Arab Emirates have VAT or sales tax?
Yes — the standard VAT/GST rate in United Arab Emirates is 5% (No personal income tax; 9% corporate tax above AED 375k). Reduced rates often apply to food, medicine and other essentials.
Is United Arab Emirates a high-tax or low-tax country?
On headline statutory rates, United Arab Emirates looks like a very low tax jurisdiction — no personal income tax and a low or zero corporate rate. This is a rough signal from top rates only, not the effective tax an average person or company pays. Tax residency, deductions and treaties change the real picture. Not tax advice.
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Sources & accuracy
Headline rates for United Arab Emirates from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Data as of June 2026; reflects roughly the 2025 tax year. These are statutory headline rates, not effective rates, and this page is general information, not tax advice — verify with United Arab Emirates's official tax authority and a qualified adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-20