FAQs

For more questions on tax, whom should I contact?

If you would like to know more about the taxes applicable in the country, you can contact the Federal Tax Authority (FTA), the government entity that is responsible for implementing federal taxes such as VAT or excise tax. You can contact the FTA by calling them at 600-599-994.

On the other hand, if you require more information on the Tourism Dirham in Dubai, you can contact the Dubai Tourism authority at 600-555-559.

Meanwhile, you can find out more about the tourism and municipality fees in Abu Dhabi by contacting the Department of Culture and Tourism at 800-555.

What are the goods exempted from excise tax?

The excise tax will not be applied to the following goods in the UAE:
1. Ready-to-drink beverages (with at least 75% milk or milk substitutes).
2. Baby food or baby formula.
3. Beverages for special dietary needs as recognized under Standard 654 of the GCC Standardization Organization.
4. Beverages consumed for medical uses as recognized under Standard 1366 of the GCC Standardization Organization.

Which goods is excise tax applicable to?

For those wondering ‘what items have excise tax in the UAE’, this tax applies to the consumption of the following goods:
– Tobacco products
– Carbonated drinks (this does not include sparkling water)
– Energy drinks
– Electronic smoking devices and tools (and liquids used in these devices)
– Sweetened drinks

Is there a tourist tax in the UAE?

Yes, tourist tax is levied by restaurants, hotels, hotel apartments and resorts in the UAE. These tourist facilities may charge one or more of these taxes in the UAE:

– 10% on room rate
– 10% as service charge
– 10% as municipality fees
– City tax (which ranges between 6% –10%)
– 6% as tourism fee

Is there a social security regime?

The UAE does not impose social security on foreign workers.

The social security regime in the UAE applies to UAE and GCC national employees only. In most of the Emirates, and for a UAE national employee, social security contributions are calculated at a rate of 17.5% of the employee’s gross remuneration as stated in the employment contract. Out of the 17.5%, 5% is payable by the employee and the remaining 12.5% is payable by the employer (15% in Abu Dhabi, where the overall rate is 20%).

Why no income tax in levied in UAE?

This is simply because the government doesn’t need the money. This doesn’t mean there’s no tax at all.

The United Arab Emirates Government does not impose income taxes on companies and individuals living in the country. However, it levies corporate tax on oil companies and foreign banks. Apart from this, UAE derives its income from oil and from tourism, enough to not require an explicit income tax.

What is tax and what is VAT?

Tax is the means by which a government raises revenue to pay for public services, like hospitals, schools, defense etc. It is a compulsory payment of financial charge which is imposed on individual or entity by the governmental organization in order to develop various public expenditure. Non-payment of tax is punishable by the law.

Value Added Tax (VAT) is an indirect tax, which is imposed on most supplies of goods and services that are bought and sold. It is also known as a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Who are the registered tax agents for UAE?

As of March 18, 2018, the FTA website lists the following tax agents.  This list is subject to revision hence please visit the link below to view the updated list: https://www.tax.gov.ae/registered-tax-agents.aspx

Registered Tax Agents

Tax Agent NameRegistered DateTax AgencyTAANTAN
Asad Zuhair Sado Abbas13-02-2018Asad Abbas & Co. (Chartered Accountants)2002969030003776
Yaser Yasin Darwish15-02-2018Da Gate Hub Management Consultancies2001089830002554
Younis Ali Almulla15-02-2018Almulla For Accounting & Tax Services2001912130001572
Jadd Shalak15-02-2018Averyx Management Consultancies2003851930004899
Majid Abdulrahman Alshaikh15-02-2018Majid Alshaikh Consultancy2004093730000970
Hamdan Zakaria Awda20/02/2018Hamdan Awda Chartered Accountants2002460030001481
Yasser Atiyyeh22/02/2018XB4 Solutions(Dubai Branch)2001375130000657
Hamad Abdulla Alshamsi22/02/2018Prestige Auditing L.L.C2001324930003271
Mohamed Mostafa Kamel Yousef El Agha26/02/2018Osol Al Khebra Accounting & Bookkeeping LLC2004476430001200
Anssar Mohammed Ahmed Siddiq26/02/2018Verify Accounting & Consulting2003102730003537
Muhanned Anbari27/02/2018Becker for Financial Solutions LLC2003864230004279
Fuad Ibrahim Muflih Alomari27/02/2018Al Khaleej Tax Consultancy L.L.C2000922130004766
Ahmed Maher Mohamed Hassanien28/02/2018Ahmed Hassanien and Co Auditing of Accounts2001309030003727
Ratheesh Mekkat28/02/2018Al Mithaq Tax Consultancy2000809030001259
Abdel Hameed Zaitoun8/3/2018Genome Consulting2003252030000640
Ahmad Wafi Kanafani8/3/2018Kanafani Tax Services2000174930000863
Ghassan S. M. Jamoos11/3/2018Al Zarooni Tureva Auditing2003659630000343

Will there be any special schemes for SMEs?

No special rules are planned for small or medium sized enterprises. However, the FTA will provide materials and resources available for these entities to assist them in their enquiries.