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Salary & Freelance Tax Calculator in the UAE

Universal Tool for Calculating Salary Taxes in the UAE for Expats

Receiving a payroll, employees from other countries, see how much money their country collects in the form of various taxes. This amount can even reach the half of total income (tax is levied both on the employee and on the company where he/she works). As for employees of both private and state-owned companies registered in the United Arab Emirates, they do not pay taxes on their salaries to the country budget. Therefore, the average salary level here is comparable to salaries in developed Western countries. However, there may be certain nuances related to the fact that a foreign employee (expat) may be taxed in his/her country of origin. In order not to get confused, when evaluating your base salary after tax deduction, we recommend you to use our specialized tool – tax calculator/estimator. The results of its calculations will also be useful when completing an annual tax return.

It should be noted that in the UAE there are no charges typical for expats from other countries. Even VAT that was introduced at the beginning of 2018 is only 5% (in most other countries it is about 20%), and there are some exceptions, for example, they have developed a special tax refund scheme for tourists. The UAE is famous for its great business environment, and it is thanks to zero tax rates on all types of income (including salaries) they managed to get such a large number of foreign experts and specialists here.

It is possible there will be the end of such a tax haven in the United Arab Emirates on some day. And although some rumors appeared among entrepreneurs that the government is going to tighten tax policy, especially with regard to foreign businessmen, local authorities are well aware of the fact that foreign investment from business registration is a great source of income to the national budget, and foreigners can leave the local market if they start to apply additional taxes. Both the country budget and local citizens will suffer from this. How to avoid such a scenario? Stay a country with minimal rates. This is the path that was chosen by the UAE. What is the problem with calculating taxes on salary? The fact is that any foreigner can obtain legal work here with a residence visa, but this person is a citizen of another country, which means that he/she is subject to the laws of the country of origin, including those relating to taxes on income and wages. Our new online tool – the calculator is based on the relevant legal regulations and takes into account these features, with its help you can quickly calculate your taxes.

How to calculate tax for a salary of self-employed in the UAE?

The UAE legislation is very flexible in hiring foreign employees. Foreigners engaged in freelance (self-employed) or those who work remotely, for example in one of the limited liability companies in local free zones and live in another country is a typical situation in the UAE. How can such a specialist fill out a tax return in his/her country? Our calculator will help to deal with it. This universal tool is useful to a very wide range of foreigners who work here.