Telephone Numbers
Telephone Numbers
What are the Tax Rates and Tax System in Dubai
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The Dubai Federal Tax Authority (FTA) is the official body that regulates and supervises tax administration in the United Arab Emirates (UAE). Established in 2016, the FTA manages all tax transactions in the UAE digitally and enables businesses to fulfill their tax obligations. The FTA oversees the implementation of various types of taxes, such as value-added tax (VAT), corporate tax, excise tax, and ensures the correct submission of tax returns. It also conducts taxpayer education, advisory services and tax audits. By ensuring that the UAE's tax system is transparent, efficient and in line with international standards, the FTA supports the country's economic growth and sustainable development.
Tax rates in Dubai provide great advantages to businesses compared to many countries. If we continue on general topics, Dubai businesses are obliged to make declarations within the scope of Corporate tax, Value Added Tax (VAT), customs duty and special consumption taxes. The most up-to-date tax rates in Dubai, which we have shared for you below, will be useful for you to manage your business correctly.
The corporate tax rate in Dubai came into effect in June 2023 and is 9% for businesses with profits in excess of AED 375,000. Below AED 375,000 profit, businesses are exempt from corporate tax.
The corporate tax return is generally due by the 9th month of the following year for the period ranges selected when applying for corporate tax registration for your business.
In Dubai, United Arab Emirates, VAT rates are 5% for sales within the country and 0% for sales outside the country.
VAT Declaration is submitted every 3 (three) months unless your business turnover exceeds AED 150 million. If you have a turnover of over AED 150 million, you are required to submit your declaration to the FTA on a monthly basis.
Customs duty rates in Dubai are generally around 5% and apply to most imports. However, for some products, this rate may be higher, for example alcohol, tobacco and some electronic products. Dubai is able to offer exemptions or discounts from customs duty for some products thanks to its free trade zones. In addition, customs clearance in the UAE is digitized and highly transparent, making trade faster and more efficient. Customs duty has been kept at reasonable levels to increase Dubai's trade volume and encourage international trade.
In Dubai, Excise Tax is usually imposed on products that have negative impacts on health and the environment. This tax was introduced in 2017 and is applied at high rates on products such as alcohol, tobacco products, energy drinks and sugary drinks. Alcohol and tobacco products are taxed at a rate of 100%, while energy drinks and sugary drinks are taxed at rates ranging between 50% and 100%. With these taxes, Dubai aims to reduce consumption while at the same time protecting the environment and public health. The excise tax in Dubai is an important tool for Dubai to achieve its sustainable development goals and plays an influential role in regulating domestic and international trade.
Yes, tax returns are required to be filed in Dubai. Businesses must regularly submit returns to the Federal Tax Authority (FTA) for value added tax (VAT), corporate income tax and other taxes. VAT returns are usually filed on a monthly or quarterly basis, according to set periods depending on the turnover of the business. In addition, businesses also file a corporate tax return on their annual income. These processes are carried out entirely digitally through the FTA portal.
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