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.
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.