Taxation in the United Arab Emirates
The United Arab Emirates is a federation of seven emirates, with autonomous emirate and local governments. UAE does not have any enforced federal income tax legislation for general business. An income tax decree has been enacted by each Emirate, but in practice, the enforcement of these decrees is restricted to foreign banks and to oil companies.
Income tax 
Foreign banks are taxed at 20 percent of their taxable income in the Emirates of Abu Dhabi, Dubai and Sharjah. The tax is restricted to the taxable income which is earned or deemed to be earned in that particular Emirate. Oil Companies (which include any chargeable person that deals in oil or right to oil both off-shore and on-shore) pay a flat rate of 55 percent on their taxable income in Dubai and 50 percent in the other Emirates. In addition, they pay royalties on production.
Personal incomes, including all forms of salary and capital gains wherever arising, are not subject to taxation in any of the Emirates.
Other taxes 
Municipal taxes are levied in most Emirates on annual rental paid at 5 percent for residential premises and 10 percent for commercial premises.
Other local taxes include a 5 percent tax on hotel services and entertainment.