In Dubai, there is no personal income tax on salaries or wages. This means that your earnings are not subject to income tax deductions, allowing you to retain your full salary.
However, the United Arab Emirates (UAE) does impose other forms of taxation:
Value-Added Tax (VAT): A 5% VAT is levied on the purchase of most goods and services.
Excise Tax: This tax applies to specific goods deemed harmful to health, such as tobacco products, energy drinks, and products with added sugar or sweeteners.
Additionally, while there is no federal personal income tax, certain business activities may be subject to corporate tax. For instance, under the UAE Corporate Tax Law, natural persons conducting business activities with annual turnover exceeding AED 1 million are subject to a 9% corporate tax.
It's also important to note that Dubai imposes a 5% municipality tax on rented accommodations, which is typically collected through utility bills.
In summary, while your salary in Dubai is not subject to personal income tax, be aware of other taxes such as VAT, excise taxes, and potential corporate taxes depending on your business activities.