Currently, there are no individual taxes applied in Dubai. However, there are other local and federal taxes in effect in the emirate:
A 5% Value Added Tax (VAT) is applied to most goods and services.
There is a special tax on certain products that have a negative impact on human health or the environment, such as tobacco, energy drinks, and carbonated beverages.
Goods imported from foreign countries to the mainland are subject to Customs Duties. However, companies registered in Free Zones can import goods from foreign countries to their respective jurisdictions without paying these duties.
Tourist facilities, including hotels, resorts, and restaurants, are subject to specific taxes, including municipal fees, municipal taxes, tourism fees, and service charges.
The Corporate Tax in Dubai used to apply mainly to oil-related companies and foreign banks. However, since June 1, 2023, a new Corporate Tax model has been implemented, affecting a large number of companies. Companies in Free Zones have certain exemptions, which will be announced in due course.
Published by Emirates Herald, a news and information agency.