UAE Corporate Tax — a guide for European companies
What corporate tax in Dubai and the UAE really looks like: the 9% federal CIT, 5% VAT, zero personal income tax, free zone rules and how UAE residency interacts with tax obligations in your home country.
Dubai is no longer a zero-tax jurisdiction. A 9% federal corporate tax has applied since 2023, 5% VAT has been in force since 2018, and free zones keep their preferences only for narrowly defined qualifying income.
For a European company, the real tax burden depends on structure: the type of entity, where sales take place, economic substance in the UAE, and where management and the owner's centre of vital interests actually sit.
LuxGate operates from Doha across the Gulf region and guides Polish and European companies through incorporation, Federal Tax Authority obligations and day-to-day compliance — with a clear line between what we plan operationally and what requires a formal tax adviser's opinion.
What a pre-entry UAE tax review covers
Tax burden map
A breakdown of the 9% CIT, 5% VAT, excise, customs duties and licence fees for your sales model — distinguishing local sales, exports and services for clients outside the UAE.
Mainland vs free zone
A comparison of the tax consequences of both forms, including the Qualifying Free Zone Person conditions and when mainland sales destroy the 0% rate.
Economic substance
Office, staff, management decisions and documentation at a level that withstands scrutiny both in the UAE and by your home tax authorities.
Registrations and deadlines
CIT and VAT registration with the Federal Tax Authority, tax numbers, filing cycles, audit obligations and annual deadlines built into the company calendar.
Home-country linkage
Identifying touchpoints with your home CIT, CFC rules, exit tax and the double tax treaty — together with a list of questions to settle with your domestic tax adviser.
Ongoing compliance
Bookkeeping, UAE-compliant invoicing, transfer pricing documentation for transactions with a European parent, and AML and reporting obligations.
Key UAE tax figures
- 0% personal income tax on salaries and dividends.
- 9% corporate tax on profit above AED 375,000; 0% below the threshold.
- 5% VAT with mandatory registration from AED 375,000 of turnover.
- 0% on qualifying income of free zone entities that meet the conditions.
- No withholding tax on outbound payments in standard cases.
- Double tax treaties in force between the UAE and most European countries, including anti-abuse clauses.
UAE corporate tax — frequently asked questions
Want to calculate your real tax burden?
Describe your sales model and ownership structure, and we will prepare a summary of tax burdens, registration requirements and the points that need a formal tax adviser's opinion.
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