Two numbers matter most to people working in the UAE. Employees want to know their end-of-service gratuity: 21 days of basic salary a year for the first five years and 30 days after, with no cut for resigning under the current Labour Law. Freelancers and small business owners want to know whether the 9% corporate tax applies to them.
For individuals, corporate tax only applies once business turnover passes AED 1 million in a calendar year, and even then the first AED 375,000 of profit is taxed at 0%. VAT is separate, at 5% on most goods and services.
1. End-of-service gratuity
Your gratuity from your basic salary and years of service, including part-years and the two-year cap.
2. Corporate tax and VAT
Whether corporate tax applies to your freelance or company income, and how to add or remove 5% VAT.
- UAE Corporate Tax Calculator for Freelancers and SMEsCheck whether UAE corporate tax applies to your freelance or small business income, and work out the 9% tax on profit above AED 375,000.
- VAT and Sales Tax CalculatorAdd tax to a net price, or take it out of a price that already includes it. Works with any currency and any rate.
3. Rates, finance and savings
Price your freelance work, plan finance instalments and grow savings.
- Freelance Hourly Rate CalculatorWork out an hourly rate that actually covers your income goal, expenses, and self-employment tax, not just a guess.
- Loan EMI CalculatorWork out the monthly instalment (EMI) on a loan, the total interest you'll pay, and how much of the first payment goes to interest.
- Compound Interest and Savings Goal CalculatorSee what your savings grow to with compound interest and monthly deposits, and how much you'd need to save each month to hit a goal.
Questions people ask
Is there income tax on salaries in the UAE?
No. Employment income isn't taxed. Corporate tax applies to business income, and for individuals only above AED 1 million of business turnover a year.
How is UAE gratuity different from Saudi end-of-service pay?
UAE gratuity uses basic salary only and doesn't shrink on resignation after one year. Saudi end-of-service pay uses the full wage including fixed allowances and is reduced on resignation before ten years.
What is the VAT rate in the UAE?
5% on most goods and services. To remove VAT from a price, divide by 1.05.