There is no federal
tax legislation in the UAE, instead each Emirate has its own tax law.
The following taxes are not applicable in the UAE:
- Personal income tax
- Capital gain tax
- Value-added tax
- Withholding tax
- Corporate tax
Only oil, gas and petrochemical companies and branch offices of foreign
banks are required to pay taxes.
With regards to property tax, in most of the emirates, tax is payable by
residential and commercial tenants by reference to the annual rent of residential
property at a rate of 5% and for commercial property at 10%
of the annual rent.