Tax Law

In the United Arab Emirates, the federal government does not levy taxes on individuals’ income.

However, tax laws exist, and the United Arab Emirates has signed over 113 double taxation treaties, although some of them are still awaiting entry into force. Therefore, it is imperative to consider tax laws when starting a business, and overlooking them would negatively impact a company.

The Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (hereinafter referred to as the “Corporate Tax Law”) was issued by the United Arab Emirates on 09 December 2022 and is effective for financial years starting on or after 1 June 2023.

The UAE has introduced the lowest corporate income tax rate within the GCC region at a standard rate of 9%.

The Corporate Tax is a form of direct tax levied on the net income of Companies. This new Tax Law will apply to:

  • UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;
  • Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course;
  • Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE.


At Thallium Legal consultancy, we will ensure that you are being prevented from being penalised and will provide you with specific advice depending on your sectors of activity.

Companies established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and will need to comply with the requirements set out in the Corporate Tax Law.

However, a Free Zone company that meets the conditions to be considered a “Qualifying Free Zone Person” (in particular not conducting business with Mainland companies) can benefit from a Corporate Tax rate of 0% on their Qualifying Income.

Non-resident persons that do not have a Permanent Establishment in the UAE or that earn UAE sourced income that is not related to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%).

Consequently, depending on your main place of business, your sector of activity or the size of your company, a plethora of taxes may apply to different companies and individuals. Our tax experts in our international network can advise you with their in-depth knowledge of tax regulations, both regionally and internationally. We will ensure that you receive comprehensive legal advice to keep you in compliance with the tax legislation relevant to your situation.

Our services regarding tax laws include legal opinions based on:

  • Value-Added Tax (VAT), which has been effective in the United Arab Emirates since January 2018 and applies a standard rate of 5% to most domestic supplies of goods and services. A mandatory or voluntary threshold per annum must be filed online with valid tax invoices.
  • Municipal/Property Taxes
  • Customs Duty, which is imposed in certain sectors of industries
  • Excise Tax, which has been applicable in the United Arab Emirates since the end of 2017
  • Digital Tax Stamp (DTS)


At Thallium Legal Consultancy, we will ensure that you are prevented from being penalized and provide you with specific advice depending on your sectors of activity.

Thallium Legal Consultancy can also assist you regarding:

  • Tax penalties
  • Tax litigation
  • Valuation disagreements