Personal Income Tax in the United Arab Emirates
The United Arab Emirates (UAE) has a territorial tax system, which means that only income earned within the UAE is subject to taxation. Personal income tax is not levied in the UAE, making it an attractive destination for expatriates and high-net-worth individuals.
Taxable Income
In the UAE, taxable income is defined as the total income earned by an individual from all sources within the UAE. This includes income from employment, business, investments, and property.
Exempt Income
The following types of income are exempt from taxation in the UAE:
- Income from employment outside the UAE
- Income from investments outside the UAE
- Capital gains on the sale of personal assets
- Gifts and inheritances
- Social security benefits
Tax Rates
There is no personal income tax in the UAE.
Tax Calculation
Since there is no personal income tax in the UAE, there is no tax calculation process.
Legal Basis
The UAE's tax system is governed by the following laws:
- Federal Law No. 7 of 2017 on Tax Procedures
- Federal Law No. 8 of 2017 on Value Added Tax
- Federal Law No. 9 of 2017 on Excise Tax
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