DoubleTaxationTaxes on salary: United Arab Emirates preliminary data
How much income tax and social contributions are paid on a salary in United Arab Emirates, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | AED 258,272 ≈ €60,000 |
|---|---|
| Take-home pay | AED 258,272 ≈ €60,000 |
| Employer's labour cost | AED 258,272 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 AED 129,136 | €60,000 AED 258,272 | €120,000 AED 516,544 |
|---|---|---|---|
| Sole proprietor | AED 0 0.0 % | AED 0 0.0 % | AED 0 0.0 % |
| Company | AED 0 0.0 % | AED 0 0.0 % | AED 8,090 1.7 % |
| Sole proprietor · Small Business Relief | AED 0 0.0 % | AED 0 0.0 % | AED 0 0.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover United Arab Emirates yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 4.304537 AED (Central Bank of the UAE — fixed peg AED 3.6725 = USD 1, 2026-01-02) ↗
Sources
- WAM (Emirates News Agency) — UAE issues Federal Decree-Law on corporate tax, 9% above AED 375,000
- MOHRE — Monthly contribution employer guideline under Pension Law No. 57 (GPSSA)
- Central Bank of the UAE
- UAE Ministry of Finance — extension of Small Business Relief until 31 Dec 2029 (Ministerial Decision No. 131)
- UAE Ministry of Finance — Cabinet Decision 49/2023 on natural persons conducting business (AED 1m threshold)
- UAE Ministry of Finance — Domestic Minimum Top-up Tax
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.