Calculate now

Tax calculator
Dubai

Our tax calculator allows you to calculate different types of taxes in Dubai

Learn more

Free of charge in your language

Our
Experts
are just
a click
away!

Contact

Dubai / Taxes in Dubai Businesses

Double Taxation Agreements in the United Arab Emirates

As part of its international economic strategy, the United Arab Emirates has built an extensive network of Double Taxation Agreements (DTAs) and Bilateral Investment Treaties (BITs). These agreements strengthen the country's global competitiveness and provide greater legal and tax certainty for international investors and businesses.

Today, the UAE has concluded approximately 193 agreements of this type. Their purpose is to reduce or eliminate double taxation on cross‑border investments and profits. In addition to tax relief, these treaties also provide a framework for investment protection and facilitate the repatriation of profits in freely convertible currencies.

What is double taxation?

Double taxation occurs when the same income is taxed in two different jurisdictions. This situation typically arises when a person or company earns income in one country while being tax resident in another.

Without a treaty framework, the same income could therefore be taxed twice. This creates an unnecessary financial burden and may discourage cross‑border investment, international trade, and the movement of capital, technology, goods, and services.

Table of Contents

Purpose of Double Taxation Agreements

The UAE's treaty network

Purpose of Double Taxation Agreements

Double Taxation Agreements are designed to avoid this problem by allocating taxation rights between the two countries involved. They also provide clear rules for determining tax residency, withholding tax treatment, and the taxation of business profits, dividends, interest, and royalties.

For companies and investors, this creates a predictable legal environment and reduces the risk of unexpected tax liabilities.

The UAE’s treaty network

The United Arab Emirates has concluded approximately 137 Double Taxation Agreements with many of its key economic partners. These agreements support international trade, encourage foreign investment, and strengthen the UAE’s position as a global business hub.

DTAs are relevant for:

Multinational companies operating across borders
Investment firms and financial institutions
Aviation and logistics companies
Entrepreneurs conducting international trade
Individual taxpayers with cross‑border income

Through these agreements, companies and individuals operating from the UAE can often benefit from reduced withholding taxes, improved legal certainty, and simplified international tax planning.

The list of countries with which the UAE has signed a Double Taxation Agreement is continuously expanding as the Emirates strengthen their global economic partnerships.

If you would like to understand how a DTA may apply to your situation or business structure, we are happy to discuss your plans with you.

Let us now discuss your plans free of charge and without obligation.

We are happy to assist!

Call our team
for a free consultation
with one of our experts

Contact

Aspect	Dubai Freezone Company*
Jurisdiction	The free trade zones are independent economic zones with their own administration. Each zone has its own procedures for formation, licensing and supervision.
Ownership	100% foreign ownership is possible. A local sponsor is not required.
Scope of activities	The freezone is ideal for internationally active companies that operate outside the United Arab Emirates or maintain business relationships with other freezones. Direct trade on the local market is generally not provided for, but can be enabled through supplementary models (e.g. distribution partners or additional license).
License / Business purpose	Each freezone offers industry-specific licenses, e.g. for trade, services, technology or production. The granting is done directly by the respective freezone authority.
Office / Establishment	Each freezone company requires an establishment – e.g. Flex-Office, Shared Desk or an own office. We offer Full-Service packages that already contain a complete solution and enable immediate operational readiness.
Visa / Employees	Entrepreneurs and employees can obtain Residency visas. The number depends on license and office size.
Corporate tax (Corporate Tax)	Profits up to AED 375,000 per year remain tax-free. Only the profit exceeding this is taxed at 9%. Companies in a freezone that meet the legal requirements can continue to apply the tax rate of 0% on qualifying income. Small businesses with an annual turnover of up to AED 3,000,000 are completely exempt from corporate tax until the end of 2026.
Profit transfer / Withholding tax	Profits and capital can be transferred abroad without restriction. No withholding tax is levied.
Costs	Formation and ongoing costs are usually cheaper and clearly calculable. After individual consultation, we determine the optimal location and, upon request, submit a tailor-made offer that includes all services.
Conclusion	A Freezone company in Dubai is the ideal structure for entrepreneurs who are internationally active or want to conduct business with partners worldwide from Dubai. It offers full ownership rights, tax advantages and a modern, business-friendly environment.

Aspect	Dubai Mainland Company*
Jurisdiction	The mainland is subject to the state authority Department of Economy & Tourism (formerly DET) and other onshore authorities. These control all economic activities within the UAE.
Ownership	In many cases, 100% foreign ownership is also possible. In individual, regulated areas, special approvals may be required.
Scope of activities	Mainland companies may conduct business without restriction within the entire UAE. They are therefore the right choice for companies that want to be locally present and offer their products or services directly on site.
License / Business purpose	Licenses are granted centrally by the state onshore authorities. The procedures are more extensive and often subject to additional requirements.
Office / Establishment	On the mainland, a fixed business location is mandatory. As a rule, stricter area requirements and rental obligations apply here.
Visa / Employees	Mainland companies can also apply for visas for owners and employees.
Corporate tax (Corporate Tax)	For mainland companies, the same principle applies: profits up to AED 375,000 remain tax-free, above that the rate of 9% applies. This regulation ensures moderate tax burden and high planning security.
Profit transfer / Withholding tax	Mainland companies can also transfer profits freely. No withholding tax is levied either.
Costs	Formation is more complex and generally more cost-intensive. State fees, rental costs and administrative requirements are higher.
Conclusion	A Mainland company is suitable for entrepreneurs who want to be locally business active in the UAE – for example in trade, gastronomy or services for customers within the emirates.

Double Taxation Agreements in the United Arab Emirates

What is double taxation?

Purpose of Double Taxation Agreements

The UAE’s treaty network

Readers were also interested in