Last updated: 2 Jul 2012

Taxation

With the exception of foreign banks and oil companies, there is no income tax or consumption tax in the United Arab Emirates. Foreign banks pay a 20 per cent tax on their profits and foreign oil companies pay taxes and royalties on their proceeds. A five per cent customs duty is levied on all imports except certain luxury goods such as tobacco (50-70 per cent).

Tax exemption for approved projects

Austrade works in conjunction with the Australian Taxation Office ('ATO') to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 ('Tax Act').

Section 23AF should assist the international competitiveness of Australian companies and governmental organisations competing to win international tenders. Further information on section 23AF is available.

Top Business Risks

• Bribery of Foreign Officials
• Tariffs and regulations
• Doing business in the United Arab Emirates

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.