United Arab Emirates

The United Arab Emirates has no personal income tax, making it one of the most tax-friendly jurisdictions globally for individuals. There are no taxes on employment income, capital gains, dividends, or interest for individuals. This is the primary reason for the UAE's attractiveness to high-earning professionals. For UAE nationals and GCC nationals working in the private sector, GPSSA (General Pension and Social Security Authority) contributions are required: 5% employee and 12.5% employer in Abu Dhabi (15% in other emirates for employer). Expatriate workers are exempt from social security contributions. The UAE introduced a federal corporate tax of 9% on business profits exceeding AED 375,000, effective from June 2023. Free zone companies maintaining adequate substance and dealing mainly with other free zones or outside the UAE continue to benefit from 0% tax. VAT was introduced at 5% in 2018. End-of-service gratuity is mandatory: 21 days of basic salary per year for the first 5 years and 30 days per year thereafter, capped at 2 years' salary. This functions as a basic retirement benefit for expatriate workers who have no access to the social security system. The UAE has tax treaties with over 100 countries. There is no wealth tax, inheritance tax, or gift tax. The combination of zero personal income tax and relatively low VAT makes the effective tax burden among the lowest in the world.