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In the United Arab Emirates (UAE), including Dubai, there is no federal corporate income tax imposed on most types of businesses. However, there are some exceptions and indirect taxes that businesses may encounter. Here are some key points regarding corporate tax in Dubai
As of my last update in January 2022, the UAE does not impose federal corporate income tax on companies, including those registered in Dubai. This means that businesses operating in Dubai generally do not pay corporate tax on their profits to the federal government.
The UAE introduced Value Added Tax (VAT) in 2018. VAT is an indirect tax levied on the sale of goods and services at each stage of production or distribution. Currently, the standard rate of VAT in the UAE is 5%. Businesses in Dubai are required to register for VAT if their taxable supplies and imports exceed the mandatory registration threshold.
