The UAE's 0% personal income tax is real — but if you're American, the story doesn't end there. Here's what actually applies to a US founder with a Dubai company.
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0% personal income tax — what it covers
The UAE levies no personal income tax on individuals — no tax on salary, dividends, or capital gains at the personal level. For a UAE tax resident, that's a genuine advantage and a major reason founders relocate.
The 9% corporate tax (and the free-zone exemption)
Since 2023 the UAE has a 9% federal corporate tax on business profits above AED 375,000. Crucially, Qualifying Free Zone Persons can still benefit from a 0% rate on qualifying income if they meet substance and other conditions. Getting this right is worth real money — see Corporate Tax & VAT.
5% VAT
VAT is 5% and applies once your taxable supplies cross the registration threshold (AED 375,000). We handle registration and quarterly returns so it never becomes a fire drill.
The part US founders must not ignore
As a US citizen or green-card holder, you're taxed on worldwide income no matter where you live or incorporate. Owning a foreign company triggers US filing obligations — commonly Form 5471 (for the company) and the FBAR / FinCEN 114 (for foreign bank accounts over $10,000).
Does a UAE company still make sense for Americans?
Often, yes — for asset protection, a credible international base, GCC market access, and deferral/efficiency depending on your situation. The 0% personal rate is most powerful if you become a UAE tax resident. Read how US founders set up in Dubai.
Want the UAE side handled cleanly so your CPA's job is easy? Message us for a fixed-fee quote.
Written and fact-checked by CompanyForm's in-house formation specialists — the same team that files trade licences, arranges bank introductions, and handles tax and visas for founders setting up in the UAE.
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