United Arab Emirates

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Country Knowledge

Our local member provided the following preliminary information about doing business in this country.
Please contact the firm for more information and obtain professional advice in each country concerned.
Our local member will be happy to help you proceed with your business!

General information

Languages :

  • Arabic
  • English

Population : ~ 10 million

Currency: UAE Dirham (AED)

Current Exchange Rate to USD: 1 USD = 3.67 AED

Standard corporate income tax rate:

Corporate Tax Rate for all Entities:
(i) 0% : on taxable income that does not exceed AED 375,000.
(ii) 9% : on taxable income that exceeds AED 375,000.

Corporate Tax Rate for Free Zone Persons:
(i) 0% : on Qualifying Income.
(ii) 9% : on Non-Qualifying Income.

Interest expense deduction rules:

"The net interest expenditure allowable as a deduction shall be higher of the following:
(i) Up to 30% of EBITDA excluding exempt income.
(ii) An amount specified by the Cabinet."

Laws and government

Common law: 1

Civil law: 1

Religious: 1

Other infos about legal system :

The UAE adopts a dual legal system of civil and Sharia laws, and recently the system has been extended to include the common law as being practised in Dubai International Financial Centre Courts (DIFC).

The principles of the UAE's laws are drawn basically from Islamic Sharia (the system of law). However, most codified legislations in the UAE are a mixture between Islamic laws and other civil laws such as the Egyptian and French civil laws.

The UAE civil law system includes all relevant laws which are largely codified and adapted to meet the evolving needs of business demands, locally and internationally. In parallel to the civil dominating jurisdiction, the UAE adopts the Sharia law system, which works alongside the civil and criminal courts, particularly within personal status courts.

Infos about governmental layers:

The government of the UAE is a federal presidential elective constitutional monarchy (a federation of absolute monarchies). The federal government is divided into a legislative, executive, and judicial branch.

Federal / national only?: 1

State / provincial too?: 1

Data privacy rules?:

Federal Law No. 45 of 2021 (the UAE Data Protection Law)

Data security rules?:

Federal Law No. 45 of 2021 (the UAE Data Protection Law)

Standards & Tax treaties

Number of tax treaties: 137

OECD MLI treaty signatory?: YES

Type of tax: VAT / Excise

Taxes on foreign products?: Custom Duty

Taxes on foreign services?: VAT

Typical time and cost to incorporate a local private company: 1 month

Typical time and cost to register a branch of a foreign company: 2 months

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. While our members make every effort to ensure the accuracy and reliability of the information presented, we cannot guarantee its completeness, timeliness, or suitability for any particular purpose.

We strongly recommend that you seek professional advice from a qualified expert in the relevant field before making any decisions or taking any actions based on the information provided on this website. Your reliance on any information presented on this website is at your own risk.

Please note that the information on this website is subject to change without notice, and we assume no responsibility or liability for any errors or omissions in the content. By accessing and using this website, you agree to release us from any and all claims, liabilities, and damages arising from your use of the information provided herein.

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