Tax on a UAE salary
Do I have to pay income tax on my salary in Dubai?
The situation
The UAE has no personal income tax on salary. Corporate Tax applies to individuals only for business income above AED 1 million a year.
The law
- Cabinet Decision 49 of 2023: Wages excluded from Corporate Tax for individuals
What it means for you
Example: AED 40,000 a month salary means no UAE tax return and no tax. VAT applies to what you spend. If you are an Indian citizen, India may still tax you if you are resident there under Indian rules, which is a question for TaxSavvy's India team.
What to do
- Keep salary slips and contract.
- No UAE filing for salary.
- Check your Indian residence status with the India team.
- Apply for a TRC if a treaty claim is needed.
We can do this for youUAE tax residency certificate and personal tax position for expats: residency tests, TRC application and what the UAE does not tax: AED 3,250