Tax In UAE

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in the UAE is complying with the country’s tax system. As well as paying tax in the UAE, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

Currently, there are no taxes on income in the UAE. However, laws are constantly changing. You will need to find someone who can keep you updated and informed!

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in the UAE, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in the UAE are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A UAE umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in UAE taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the UAE tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in the UAE, many of whom are experts in tax and immigration laws. If you have any questions about tax in the UAE, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their UAE work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in the UAE but without the overhead of directly dealing with the UAE tax authorities. Get in touch with us today for some reliable advice on tax in the UAE!

United Arab Emirates Dirham (AED)
How long does it take to set up:
8-9 days
How much does it cost:
AED6,270 + notary fees of 0.25% of the capital (capped at AED10,000) + 5% of the value of the lease agreement
Is it easy? :
Starting a business in the UAE has its administrative challenges. The UAE has a ‘Starting a Business Rank’ of 51 out of 190 countries (Source: World Bank).

There are currently no taxes on income in the UAE.

Does the 183 day rule apply in:


When do you become a tax resident in:

There is no residency for tax purposes in the UAE. However, the Ministry of Finance issues certificates to individuals who have been physically present in the UAE for at least 183 days within any 12-month period.

Am I taxed on my global income in:



Client comment

  • Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

    John Zimmer Charles River Development / Vice-President, Finance