Corporate Taxation

Although local decrees of income tax have been promulgated in all emirates, nevertheless, none of them has yet been enforced except in cases of oil companies and branches of foreign banks.

Under Abu Dhabi income Tax Decree Dubai Income Tax Decree, companies dealing in oil both on-shore and off-shore pay tax at the rate of 50% (55 % in Dubai ) on their taxable income in addition to the fact that oil companies also pay royalty on production.
On the other hand, net taxable income of foreign banks is subject to tax at a flat rate of 20%, implemented in Abu Dhabi & Dubai .

Individual Income Tax

No income tax applicable on individuals in UAE

Double Taxation Treaties

UAE has signed bilateral agreements for promotion of investment and trade between the parties to the treaty by eliminating double taxation. These agreements do not apply to taxation of income derived from petroleum and natural resources. Double taxation agreements are concluded between UAE and the following countries.
France - Pakistan - Poland - Turkey - China - Romania - Italy - Egypt - Germany -Singapore - Malaysia - Indonesia - India.

The agreements benefit residents in the UAE whose income arising in UAE is subject to tax in any of the treaty countries. The benefits may cover business profits, dividends and certain other type of income including personal income. Although corporate taxation is not applied in the UAE, the provision of the treaty do not state that the income arising has to be taxed to qualify for benefits