Is Personal Tax Coming to Dubai?

Is this the end of Dubai tax free era? Is personal income tax on the horizon in the UAE? These has been quite a popular topic lately, and I have been asked by many people what my thoughts are on this subject.

I decided to dive a bit deeper, and see what are the current narratives around personal tax in Dubai, as well as in the region. As you are probably aware, neighbouring Oman has recently introduced personal income tax. Omani citizens will be taxed at a flat rate of 5% on their net global income above $1 million. Expatriates pay a tax on incomes exceeding $100 000 USD.

Could this initiative nudge other GCC nations towards similar tax reforms?
You can sigh a breath of relief, at least for now since UAE doesn't plan on introducing personal taxation anytime soon. Saudi Arabia is on the same page, and they also have no plans to introduce income taxes.

Economy minister of UAE Abdulla bin Touq Al Marri has confirmed this notion, dismissing speculation the country was in discussions to end its traditional tax-free status. This was not even on the table! - he said.

News article covering this topic:

It seems there is nothing to worry about when it comes to taxes in Dubai, at least not anytime soon. Dubai will likely remain a tax haven for many wealthy individuals and entrepreneurs as it has been in the past.
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[Filipom]

If they start taxing individuals, for sure a lot of people will leave. Dubai is such a difficult place to live in: the air quality is bad, everything feels fake… I can’t even take my dog to a park! My dog isn’t allowed in parks, what a s*** country. I’m moving to Malta next month.

[cymorasolutions]

Welcome back Michael, I hope your back is doing better than when you were in Taiwan.

Thank you for the insights.

[DavidF.Lambert]

I think it will depend of the competition, if a free zone or something similar is created in Europe or EA and they are efficient, this can be hard on Dubai. But for now they still on top.

[radio_nowhere]

The thing is, I'm not sure how it works for day traders like me. If I'm making 10M USD/year, i don't know for how long can i get away without paying taxes. Eventually, it's coming, if not already here. ❤

[OffshoreCitizen]

Would UAE (and in particular Dubai) completely lose the appeal if they were to introduce personal taxes?

[ivar]

Make a video of what you think of Latvia vs Estonia (both dont tax undistributed profits so both good to park profits)

[Mr_Fairdale]

Hope you're doing well, Michael! Happy New year

[WallStreetIceCream]

Would defeat the whole purpose to move there

[amostofi]

Why would the minister announce it and hurt the economy before the tax is implemented?

[MattWebley]

The problem is the UAE need to keep the west "happy", with tax base erosion they HATE that Dubai is such an awesome jewel in the desert, I think if they bring in personal income tax Dubai's growth will suffer for sure, I hope they resist.

[sonny]

Cheers Michael. Well done for up-cycling your old curtains into a top too 👌

[eliotgoodfellow]

The way the Corp tax has been applied, is effectively a disguised income tax. People don't understand this detail yet.

[ibanker]

The question is whether they would allow tax without representation. I don't see them giving out citizenships. At best, they could introduce a Green Card (i.e. permanent residence, not limited to # of years)

[MartinZanichelli]

Does not matter the taxes, I go there just because of the weather in summer 😅😂

[HunkyMan]

Who would want to live in a desert without tax savings? Unbearable heat in summer, sand storms etc - not worth it

[wisdomfromprystinetheempress]

Probably this is the most powerful way to tackle the gigantic problem of scammers! Dubai has the 99, 99% scammers of the world regularly visiting or even living there!

[MrAmhara]

I expect all Gulf Cooperation Council countries including UAE to be in tax alignment. Oman has personal income tax then the other members will study and follow. Oil is the UAE’s main source of revenue and electric vehicles are taking market share from petrol demand. The Arabs will be extremely desperate by 2028.

[pankajpurohit]

If they start taxing at personal and fail to provide social security benifit to expat..thrn yes it will loose charm

[tccco]

I have lived in the UAE and looking to move back there for good, if they bring in person income tax it will take a real shine off the place.


Why stay in a place that is not liveable for 4 months a year and little natural beauty if they tax personal income

[overman]

If there's income tax then they have to offer citizenship and/or the same benefits Emiratis get.