Tax Figures
Corporate Income Tax
There is no corporate income tax in UAE except for certain industries (branches of foriegn banks and companies engaged in Oil and Gas)
Income Tax Rate
0-∞: 0%
There is no Income Tax or Employers or Employees Social Security for foreign workers in the UAE.
Payroll Tax
N/A
Sales Tax
N/A
Withholding Tax
N/A
Time to prepare and Pay Taxes
12 Hours
Employers Social Security and statutory contributions
- 0% for foreigners
- 12.5% pension contributions for local staff
Employees Social Security and statutory contributions
- 0% for foreigners
- 5% pension contributions for local staff
Payroll
There are specific rules for payroll and taxation in the UAE, depending upon whether your company employs foreign nationals or locals. Generally speaking UAE has very little in the way of corporate tax concerns as there is no individual income tax for employees, no social security for expats, no payroll tax, no statutory pension contributions for expats and no withholding tax.
Remote Payroll
A remote payroll in UAE is where a foreign company, i.e. a non-resident company, payrolls a resident employee in UAE. One option for a non-resident company is to payroll its employees (local and foreign) in UAE is to use a fully outsourced service like a GEO, which will employ and payroll the staff on their behalf.
Local Payroll Administration
In some cases, a company will register their business in UAE under one of the forms available, (Representative Office, Branch Office or Limited Liability Company) but prefer to have another company administer its payroll. This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. However, the payroll calculations, payments and filings can all be outsourced to the payroll provider.
Internal Payroll
Larger companies with a commitment to UAE may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a UAE payroll, and can fulfill all tax, withholding, and payroll requirements.
This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with UAE employment laws.
Currency
Emirate Dirham (AED)
