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Hiring in United arab emirates

United Arab Emirates (UAE), also known as the Emirates, is a country in the Middle East. Abu Dhabi is the capital and Dubai is the largest city. Arabic is the official language and UAE Dirham is the official currency. Oil and gas, tourism, financial services and manufacturing are some of the major industries of the Emirates. UAE’s main trading partners are China, India, United States, United Kingdom and Germany. Global PEO or Employer of Record (EOR) play a pivotal role in providing companies with services related to hiring employees, and ensuring compliance with UAE’s legal and tax regulations. Employment regulations are covered by the Labor Code. Labor Code stipulates that employees are entitled to 30 days of annual leave. The UAE does not levy income tax on individuals. Global PEO’s or Employer of Record (EOR) facilitate companies by ensuring compliance with UAE’s Labor Code and tax laws.

statutory labor requirements

Probation Period

  • As per UAE Labor Law, probation period is for 6 months.

Annual Leave

  • Employers must give the employee one period of special leave during their employment, without pay and not exceeding 30 days, to complete the Hajj pilgrimage to Mecca.
  • Employees who have completed at least six months of work but have not yet completed one full calendar year of service are granted two paid days per month of annual leave. 
  • Employees who have completed at least one full year receive 30 days of paid leave per year.

Public Holidays

  1. Hijri New Year’s Day, one day
  2. Gregorian New Year’s Day, one day
  3. Eid Al Fitr (end of Ramadan), two days
  4. Eid Al Adha and Waqf, three days
  5. Prophet Mohammed’s Birthday, one day
  6. Isra and Al Miraj, one day
  7. National Day, one day (2nd December)

Maternity Leave

  • Working females are entitled to 45 days of full pay for maternity leave provided that she has served continuously for at least one year. 
  • Maternity leave is paid with half pay if one year of service has yet to be completed. 
  • At the end of the maternity leave, the woman has the ability to extend her leave at an unpaid rate for a maximum period of 10 days.
  • For the first 18 months following delivery, female employees who nurse their child are granted two paid rest intervals per day, not exceeding 30 minutes, in order to complete this task.

Paternity Leave

  • Working fathers are not provided paternity leave under the Law.

Sick Leave

  • If an employee becomes sick or injured and is unable to attend work, the ailment must be reported to the employer within a maximum of two days. 
  • After the probation period (three months working) has been completed the employee receives 90 days of continuous or intermittent sick days. 
  • Sick leave remuneration is as follows:
    • Full pay for the first 15 days
    • Half pay for the next 30 days
    • No pay for the remaining 60 days

Work Hours

  • The work week in the UAE consists of a maximum of eight hours per day and forty-eight hours per week. 
  • Employees shall not be required to work more than five consecutive hours per day without a period of time allocated for rest, meals, and prayer.
  • Working hours may be increased to nine hours per day for those employed in trades, hotels, cafeterias, and as guards.
  • Friday is the set day of rest for all workers.

Overtime

  • Employees who work overtime are entitled to overtime pay equivalent to their wage pay during ordinary hours plus an additional amount of at least 25% of the wage for the overtime period
  • The additional overtime rate increases to a minimum of 50% of the normal wages should the overtime hours fall between 9:00 pm and 4:00 am.
  • Workers who complete work on Friday are entitled to request a rest day in lieu which can be taken at a later date or to be paid their basic wage plus an additional rate that is at least 50% of the said wage.

Notice Period

  • The terminating party must give written notice to the other party in order to terminate the contract. 
  • The notice period is a minimum of one month and a maximum of three months (If the renewal happened before January 1, 2016, and the notice period was not stated in the contract, the default notice period is three months).

Severance

  • Any employee who has completed one year or more of continuous service is entitled to the end of service remuneration at the conclusion of their employment. 
  • Only paid days of work are included when computing the period of service. 
  • The remuneration is as follows:
    • Twenty-one days’ pay for each year of the first five years of service.
    • Thirty days pay for each additional year. However, the entire total remuneration shall not exceed two years pay.
    • End of service pay will be prorated for fractions of the year as long as the employee has completed at least one year of continuous service.

13th / 14th Month Pay

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • Employees are entitled to 30 days annual leave.
  • In addition, employees are entitled to national holidays, length of which, the government decides before it begins.

income tax

Abu Dhabi

  • The UAE does not levy income tax on individuals.

Ajman

  • The UAE does not levy income tax on individuals.

Dubai

  • The UAE does not levy income tax on individuals.

Fujairah

  • The UAE does not levy income tax on individuals.

Ras Al Khaima

  • The UAE does not levy income tax on individuals.

Sharjah

  • The UAE does not levy income tax on individuals.

Umm Al Quwain

  • The UAE does not levy income tax on individuals.

 

deductible expenses 

Abu Dhabi

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Ajman

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Dubai

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Fujairah

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Ras Al Khaima

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Sharjah

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

Umm Al Quwain

  • No personal tax is levied in the UAE; hence tax deductions are not applicable.

immigration

  • All foreign nationals wishing to visit the UAE on business must have a valid visa status to enter the UAE, with the exception of nationals of GCC (Gulf Cooperation Council) countries (excluding Qataris).
  • Foreign nationals may enter the UAE for business purposes under a company sponsored visit visa or free visa on arrival.
  • Business activities allowed under company-sponsored visit visas or free visas on arrival are generally restricted to training, conferences, meetings, seminars and similar activities.
  • Companies wishing to sponsor foreign national employees must apply for employment residence permits for the individuals, unless they are eligible for a non-sponsored labor or Free Zone identification card. 
  • Companies must be eligible to sponsor foreign nationals and have available quota. 
  • For companies located in mainland jurisdictions, the applications go through the Ministry of Human Resources and Emiratizations and the General Directorate of Residency and Foreigners Affairs (GDRFA). 
  • For companies located in Free Zone jurisdictions, the applications go through the Free Zone authority and the GDRFA. 
  • The application by the sponsoring company must include, among others, the following documents: 
    • A copy of the prospective employee’s passport 
    • Passport photos of the prospective employee 
    • A legalized university diploma (for professional roles) 
  • The overall process for a UAE employment residence permit should take four to six weeks. 
  • In Free Zone jurisdictions, work can begin when the employment residence permit is stamped within the employee’s passport. 
  • For mainland jurisdictions, work can begin when an individual has entered the UAE on an employment entry permit or has undergone a local status amendment. 
  • If a company wants to hire a GCC (Gulf Cooperation Council) national (except for a Qatari national) or a female who is sponsored under her husband’s or father’s sponsorship, it can seek a non-sponsored labor identification card for the individual. 
  • This is an alternative way for an individual to become authorized to perform work-related activities, without the need of sponsoring the individual’s UAE employment residence permit. 
  • As of recently in the UAE mainland jurisdictions, this option is also available to non-GCC male employees. 
  • Individuals who want to pursue self-employment, establish a business, invest in property or set up a foreign subsidiary in the UAE should seek analysis and advice on a case-by-case basis.

 

Type of Visa/ Permit

Documentation

Validity

Eligibility

Employment Visa

  • Your original passport along with a copy of your passport
  • A passport-size picture, in line with UAE requirements
  • Copies of your academic qualifications. Your qualifications have to be authorized by the UAE Embassy or consulate in your country as well as from the Ministry of Foreign Affairs of your country.
  • Medical certificate, issued by a government-approved health center in the UAE.
  • Documents from the company hiring you, such as the commercial license of the company or the company card

60 days (during this time employer arranges to get a UAE residence permit)

  • Individuals entering the UAE for business purposes such as training, conferences, meetings etc. are eligible for company sponsored employment visa

Employment Residence Permit

  • Your original passport along with a copy of your passport
  • A passport-size picture, in line with UAE requirements
  • Copies of your academic qualifications. Your qualifications have to be authorized by the UAE Embassy or consulate in your country as well as from the Ministry of Foreign Affairs of your country.
  • Medical certificate, issued by a government-approved health center in the UAE.
  • Documents from the company hiring you, such as the commercial license of the company or the company card
  • Residence visa (original and copy)
  • Emirates ID card and labor card (original and copy)

3 years (can be renewed)

  • Companies wishing to sponsor foreign national employees must apply for employment residence permits for the individuals, unless they are eligible for a non-sponsored labor or Free Zone identification card. 
  • Companies must be eligible to sponsor foreign nationals and have available quota. 
  •  

 value added tax

Abu Dhabi

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Ajman

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Dubai

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Fujairah

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Ras Al Khaima

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Sharjah

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

 

Umm Al Quwain

  • Value Added Tax (VAT) was introduced in the UAE on 1 January 2018 with a rate of VAT 5%. 
  • The VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. 
  • UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of the supply chain.
  • A business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. 
  • Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxable supplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.
  • The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states, international transportation, the supply of crude oil/natural gas, the first supply of residential real estate, and some specific areas, such as healthcare and education.
  • A VAT exemption applies to certain financial services, as well as to the subsequent supply of residential real estate. 
  • Further, transactions in bare land and domestic passenger transport are also exempt from VAT.

VAT

Standard Rate

5%

Zero Rate

0%

Exempt Rate

0%

withholding tax

Abu Dhabi

  • There are no withholding taxes in the UAE

Ajman

  • There are no withholding taxes in the UAE

Dubai

  • There are no withholding taxes in the UAE

Fujairah

  • There are no withholding taxes in the UAE

Ras Al Khaima

  • There are no withholding taxes in the UAE

Sharjah

  • There are no withholding taxes in the UAE

Umm Al Quwain

  • There are no withholding taxes in the UAE

 termination

Abu Dhabi

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Ajman

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Dubai

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Fujairah

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Ras Al Khaima

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Sharjah

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

Umm Al Quwain

  • Federal Law No. 8 of 1980 grants both employers and employees the right to terminate the employment contract, should sufficient notice be given, and the circumstances fall within those defined by the Ministry of Labor. 
  • Additionally, contracts may be terminated without notice under specific cases stated in Article 120 and Article 121 such as failure by either party to fulfill their contract obligations or if harm has been done by one party to the other.
  • The death of the employer does not constitute the termination of a labor contract unless the contract is directly related to him personally. 
  • However, should the employee suffer total disability after their employment begins, the contract may be terminated. 
  • Partial disability does not constitute the termination of an employment contract if the employee is able to perform other work that suits their health. 
  • If the employee requests, the employer should transfer them to other work with wages equal to those paid for similar work.

 statutory benefits

Abu Dhabi

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Ajman

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Dubai

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Fujairah

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Ras Al Khaima

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Sharjah

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

 

Umm Al Quwain

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits

Statutory Benefits

Probationary Period

Annual Leave

Public Holidays

Maternity Leave

Sick Leave

Overtime Pay

Notice Period

Severance Pay

Social Security Benefits

payments and invoicing

Abu Dhabi

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Ajman

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Dubai

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Fujairah

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Ras Al Khaima

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Sharjah

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

Umm Al Quwain

  • Businesses can register for VAT through the eServices section on the FTA website. However, they need to create an account first.
  • VAT-registered businesses collect the amount on behalf of the government; consumers bear the VAT in the form of a 5 percent increase in the cost of taxable goods and services they purchase in the UAE.
  • The Federal Tax Authority (FTA) is responsible for the management, collection, and implementation of federal taxes (e.g. VAT) and related penalties, the distribution of tax revenues, and the application of tax laws.
  • The Tax Procedure Law and related Cabinet Decisions govern general tax compliance obligations, the procedure for tax audits, how to appeal assessments or decisions, the disclosure of errors, administrative penalties, as well as fees for services provided by the FTA.
  • Most companies established or operating in the United Arab Emirates (except for upstream oil and gas companies and branches of foreign banks) are currently not required to file Corporate Income Tax (CIT) returns in the United Arab Emirates.

ease of doing business

  • The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
  • Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
  • According to the World Bank United Arab Emirates ranked 16th in the World in 2019 in terms of ease of doing business.

employee accruals

   
Christmas Bonus%

0%

Christmas Bonus Over Vacations %

0%

Severance per Year %

Employees are entitled to severance pay that equals 21 days of pay for each completed year of service (5.76% of annual salary)

Vacations % Employees who have completed at least one full year receive 30 days of paid leave per year (8.24% of annual salary)
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

Christmas Bonus Over Notifications% 0%
Vacations Plus%
0%
Total percentage of Salary (yearly)
The total employment accruals as a percentage of salary per anum are equal to 22.24%

employer accruals

Additional information (Country Accruals)

   
Social security 8.33%
maternity leave 45 days
sick leave 15 days
Christmas Bonus 8.33%
Christmas Bonus over Vacations 8.33%
Description The employer is responsible for withholding and remitting employee social security contributions.In the Dubai International Financial Centre (DIFC), the DIFC Employee Workplace Savings Scheme (DEWS) has been introduced, replacing the End of Service Gratuity Benefit (EOSG) , with the aim of protecting long-term employee savings. The new scheme was rolled out on 1 February 2020, and employers now are required to make monthly contributions to DEWS or an alternative regulated.Qualifying Scheme, as opposed to paying a lump sum ‘gratuity payment’ to an employee at the end of their employment. Employers are required to contribute monthly contributions of 5.83% or 8.33% of the employee’s basic salary (the actual percentage is contingent upon the employee’s length of service) into the scheme.

 

Employer Accruals Additional information

    Employment Accruals
Annual Leave Employees who have completed at least one full year receive 30 days of paid leave per year. This equals 8.22% (30/365 days) of annual income
Maternity Leave Working females are entitled to 45 days of full pay for maternity leave provided that she has served continuously for at least one year. This equals 12.32% (45/365 days) of annual income
Sick Leave After the probation period (three months working) has been completed the employee receives 90 days of continuous or intermittent sick days.
Sick leave remuneration is as follows:
• Full pay for the first 15 days
• Half pay for the next 30 days
• No pay for the remaining 60 days
This equals 4.1% (15/365 days) of annual income
Overtime Employees who work overtime are entitled to overtime pay equivalent to their wage pay during ordinary hours plus an additional amount of at least 25% of the wage for the overtime period
The additional overtime rate increases to a minimum of 50% of the normal wages should the overtime hours fall between 9:00 pm and 4:00 am.
Depends on the number of overtime hours worked
Severance The remuneration is as follows:
• Twenty-one days’ pay for each year of the first five years of service.
• Thirty days pay for each additional year. However, the entire total remuneration shall not exceed two years pay.
• End of service pay will be prorated for fractions of the year as long as the employee has completed at least one year of continuous service.
This equals 5.75% (21/365 days) of annual income
Social Security Contribution Social security contributions are applicable in the UAE only for UAE and GCC nationals.
If UAE/ GCC nationals are employed, then both the employer and the employee will be required to make social security contributions to the General Pension and Social Security Authority (GPSSA).
A payment of 12.5 percent by the employer (15 percent if the employer is a public entity) and 5 percent by the employee are due for UAE nationals to the General Pension and Social Security Authority (GPSSA).
This equals 12.5% of annual income

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