The United Arab Emirates (UAE) maintains a low-tax environment, particularly for individuals, as it does not impose personal income tax. Instead, government revenue is generated through indirect taxes and corporate levies. A key component is the 5 per cent value-added tax (VAT), applied to most goods and services at each stage of the supply chain but ultimately borne by the final consumer.

The country also enforces excise taxes on products considered harmful to health, including tobacco, energy drinks, and sugary beverages, to discourage consumption.

In line with global tax reforms, the UAE has introduced a corporate tax (CT) regime. Businesses pay 0 per cent on taxable income up to AED 375,000 and 9 per cent on income above that threshold.

A separate rate is expected for large multinational corporations under the OECD’s Pillar Two framework, though details are yet to be finalised. The Federal Tax Authority oversees administration, compliance, and enforcement.

Additionally, the tourism sector is subject to multiple levies. Hotels and related facilities may charge a 10 per cent room tax, 10 per cent service charge, 10 per cent municipality fee, city tax of 6–10 per cent, and a 6 per cent tourism fee. Dubai and Abu Dhabi also apply extra nightly charges.