Mainland Companies
Fully subject to 9% on profits above AED 375,000 (~$102K). Must file annual tax returns. Transfer pricing rules apply.
Leaving Dubai
The 9% tax, expanding scope, and what it means for entrepreneurs and freelancers considering their next move.
The UAE's introduction of 9% federal corporate tax in June 2023 marked a fundamental shift in Dubai's value proposition. While still lower than most countries, it signals the end of the 'zero tax' era that attracted millions of expats.
Key Points
Overview
For a business generating AED 2M in profit: UAE tax = AED 146,250 ($40K). This amount covers 16 months of luxury Bali living. Or 10 months of premium Bali living WITH a full-time team. The tax savings argument for staying in Dubai is eroding rapidly when compared to the lifestyle and cost benefits of relocation.
For personal income: yes, no personal income tax. For businesses: increasingly competitive but no longer unique. Territorial tax countries like Malaysia, Georgia, and Panama offer comparable or better business tax environments.
Potentially. If you're keeping a UAE entity, ensure it's properly structured for non-resident management and corporate tax compliance. If leaving entirely, plan the closure carefully to avoid ongoing obligations.
Keep Exploring
Free Consultation
Understanding the tax implications of your move is crucial. Our network includes international tax advisors.
Talk to the team