TaxReady insights
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Practical guidance on UAE tax, accounting, reporting and business compliance.
UAE investment fund tax incentives are tax rules that can reduce corporate tax for qualifying funds, fund managers, free zone entities and certain foreign investors. The UAE remains a powerful fund jurisdiction, but not because every fund is automatically tax free. The advantage now belongs to structures that meet…
The UAE property tax depreciation rule is a corporate tax deduction for eligible taxpayers that hold investment property at fair value. Eligible corporate taxpayers may deduct the lower of 4% of original cost or tax written down value for qualifying investment property held at fair value. The taxpayer must elect th…
Under UAE corporate tax, non-deductible expenses are business costs recorded in your accounts but not allowed to reduce taxable income. A payment can be genuine, properly invoiced, and recognized in the financial statements, yet still require an add-back in the corporate tax calculation. If a company misses that ad…
The UAE R&D tax credit now applies to tax periods starting on or after 1 January 2026. The Ministry of Finance has released that the incentive is expenditure-based, may offer a 30% to 50% tax credit, and applies to qualifying R&D conducted within the UAE using an OECD Frascati Manual approach. For businesses develo…
Withholding tax in the UAE is imposed under Article 45 of Federal Decree-Law No. 47 of 2022, but the current applicable rate is 0%. While no cash is presently deducted at source, the UAE has formally established a withholding tax regime within its corporate tax framework. Since corporate tax came into force, withho…
Free Zone DTAA Eligibility in the UAE depends on whether a Free Zone company qualifies as a resident taxable person under Federal Decree-Law No. 47 of 2022 and satisfies treaty residence standards. In this context, DTAA refers to a Double Taxation Avoidance Agreement between the UAE and another jurisdiction. Since…
Foreign Tax Credit in the UAE allows companies to offset foreign income tax against UAE Corporate Tax under Article 47 of Federal Decree-Law No. 47 of 2022. UAE Corporate Tax applies to worldwide income of UAE tax residents. Therefore, foreign-source income is included in the UAE tax base unless specifically exempt…
A Double Taxation Avoidance Agreement (DTAA) determines which country has the right to tax cross-border income and how relief applies when two jurisdictions tax the same earnings. The United Arab Emirates has signed more than 130 double taxation agreements, according to the UAE Ministry of Finance, to prevent doubl…
Taxes in Dubai are low compared to many global cities, but they are not zero. Dubai does not charge personal income tax on salaries. However, it applies federal corporate tax, 5 percent VAT, excise duties, customs tariffs, and several property-related government fees. All major tax rules are set at UAE federal leve…
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