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The tax regime in Abu Dhabi, a part of the United Arab Emirates (UAE), is relatively straightforward with limited direct taxes. For instance, there's no personal income tax, capital gains tax or value-added tax (VAT), though a 5% VAT was introduced across UAE in 2018. However, companies in the oil and gas sector and branches of foreign banks are subject to corporate taxation.
While the tax system in Abu Dhabi is simpler than in many countries, a tax lawyer can still be beneficial in helping you navigate through specific scenarios. Examples of such scenarios include setting up a new business and ensuring it is in compliance with all tax regulations, dealing with any disputes related to VAT, or handling taxes for the oil and gas sector or foreign banks. Professionals can also aid in maximizing tax efficiency and assisting with the more complex aspects of international tax law.
Noteworthy tax rules in Abu Dhabi include the existence of corporate tax for oil companies and foreign banks. Oil companies are taxed at rates stipulated in their individual concession agreements, while branches of foreign banks face a flat rate of 20%. There is also a 5% VAT, introduced in 2018, applicable to the supply of most goods and services, with certain exemptions and zero-rated items.
No, there is no personal income tax in Abu Dhabi, or anywhere else in the UAE.
No, there are no property taxes in Abu Dhabi.
No, there are no taxes on interest or dividends in Abu Dhabi.
While a 5% VAT is applicable on most goods and services, certain items are exempt or zero-rated.
Depending on your home country's tax laws, you may be required to pay tax there. It is advisable to consult with an international tax lawyer to understand your obligations.
The UAE Federal Tax Authority is a key resource for any queries. Their website provides valuable information about the VAT and excise tax regulations. Furthermore, the Abu Dhabi Department of Economic Development (ADDED) can offer guidance on corporate taxation for specific sectors in the territory.
If you need legal assistance regarding tax laws in Abu Dhabi, it is advisable to consult with a tax lawyer who is well-versed with the local laws. These lawyers can help you understand the tax implications of your financial activities, guide you on tax planning and ensure you are compliant with all necessary tax laws and regulations.
