Do you have to pay income tax in Dubai..?

The UAE Ministry of Finance’s Undersecretary, Younis Al Khouri has reconfirmed that the country’s position on personal income tax will not be changing anytime soon. That position is of course: no personal income tax for residents of the UAE. The declaration was made during the 9th meeting of the Under-Secretaries of Ministries of Finance in the Arab Countries, according to an article in Gulf News.

That means you get to keep your money to spend on, or save for, whatever you want. You and your landlord at least.

Do businesses have to pay tax?

The timing of this coffer confidence boost comes as the country’s recently introduced (June 1, 2023) corporate tax (a standard statutory rate of 9 per cent, comparatively low relative to most mature economies) came into play. The levy is due on (almost all) businesses with taxable profits exceeding Dhs375,000, and a turnover above Dhs1 million. The revenue accrued from property rental and personal investments do not currently qualify for the tax.

Is there any income tax in Saudi Arabia?

This news also follows confirmation from Saudi Arabia that they too, are not currently seeking to introduce a personal income tax. In another article on Gulf News, Saudi Arabia’s Finance Minister, Mohammed Al Jadaan is recorded as saying The Kingdom has “no intentions to impose income tax on individuals in the country.” The statement was taken from an interview at the 2024 World Economic Forum in Davos (January 15 to 19, 2024).

A Value added tax (VAT) has been in place in the UAE since the start of 2018 and is currently charged at a rate of a, also comparatively low, 5 per cent for certain goods and services. VAT exemptions include such transactions as investment-grade precious metals (eg gold and silver); newly constructed residential properties; certain education and health supplies/services; and local passenger transport.

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