Employee

The UAE levies no federal personal income tax on salary. The calculator optionally models GPSSA contributions for UAE nationals, the statutory end-of-service gratuity (EOSG) and the voluntary alternative savings scheme. Mandatory health cover, DIFC DEWS, ADPF and corporate income tax are out of scope.

GPSSA — two parallel regimes

FDL 7/1999 (registered before 31 Oct 2023):

• Private sector: contribution salary between AED 1,000 and AED 50,000; total 20% = employee 5% + employer 12.5% + government subsidy 2.5% — only when contribution salary < AED 20,000. Above AED 20,000 no government subsidy and the employer pays the full 15%.
• Government sector: contribution salary up to AED 300,000, employer 15%, no government subsidy.

FDL 57/2023 (new joiners from 31 Oct 2023):

• Private sector: contribution salary between AED 3,000 and AED 70,000; total 26% = employee 11% + employer 15%; government subsidy 2.5% (reduces employer share to 12.5%) only when contribution salary < AED 20,000.
• Government sector: contribution salary up to AED 100,000, employer 15%, no government subsidy.

End-of-Service Gratuity — Art. 51 FDL 33/2021

For full-time employees with ≥ 1 year of continuous service:

• first 5 years: 21 days basic wage per year;
• subsequent years: 30 days basic wage per year;
• partial years pro-rated;
• daily wage = basic monthly / 30 (MOHRE practice);
• Statutory cap: 24 × basic monthly wage (two years' basic salary).

Alternative savings scheme (Cabinet Decision 96/2023)

Voluntary replacement for EOSG. Employer transfers a monthly subscription to a regulated investment fund:

• 5.83% of basic monthly if service < 5 years;
• 8.33% of basic monthly if service ≥ 5 years.

Net → gross

Binary search over the gross→net function for the selected status and GPSSA model.

DIFC employee — DEWS (DIFC Employment Law 4/2020)

For non-UAE/GCC expats enrolled in DIFC on or after 1 February 2020, statutory EOSG accrual is replaced by mandatory employer contributions to a qualifying scheme (DEWS or alternative):

• 5.83% of basic monthly for the first 5 years of service;
• 8.33% of basic monthly thereafter;
• optional voluntary employee contribution (% of basic) reduces take-home and is paid out of the fund on exit.

UAE and GCC nationals working in DIFC remain in GPSSA (mainland model).

ADGM employee — WPS (ADGM Employment Regulations 2024)

Abu Dhabi Global Market introduced a mandatory Workplace Savings Plan for expats from 1 May 2023, mirroring DEWS:

• 5.83% / 8.33% of basic monthly (5-year service threshold);
• optional voluntary employee contribution;
• replaces statutory EOSG prospectively from enrolment.

UAE and GCC nationals stay in GPSSA.

Self-employed / freelancer — Corporate Tax (FDL 47/2022)

Natural persons conducting business activity fall within Corporate Tax only when annual business turnover > AED 1,000,000 (Cabinet Decision 49/2023). Wages, rental and other non-business income are excluded from this test.

Standard rates:

• 0% on the first AED 375,000 of taxable profit;
• 9% on taxable profit above AED 375,000.

Small Business Relief (Ministerial Decision 73/2023): resident taxable persons with annual revenue ≤ AED 3,000,000 may elect to be treated as having no taxable income (effectively 0%) for tax periods ending on or before 31 December 2026. The election is not automatic - it must be made in the tax return. Not available to QFZPs or members of MNE groups.

Mainland LLCs use the same 0% / 9% brackets without the AED 1 mln natural-person threshold.

Free Zone Company / QFZP (Cabinet 100/2023, MD 265/2023)

A Free Zone Person can elect to be a Qualifying Free Zone Person, which yields:

• 0% CT on qualifying income (distribution, financing, holding, treasury, FZ-to-FZ goods, etc.);
• 9% flat on non-qualifying income (no AED 375k bracket — Art. 18 + MD 265/2023);
• conditions: adequate substance in the free zone, audited accounts, transfer pricing, no election into standard CT.

De minimis (MD 265/2023 Art. 4): non-qualifying revenue ≤ the lesser of (5% of total revenue) and (AED 5 mln). A breach forfeits QFZP for the entire tax period — full 9% CT applies.

QFZP and SBR cannot stack. The model treats QFZP election as exclusive of Small Business Relief.

VAT (FDL 8/2017)

Standard rate 5%. Zero-rated: exports outside the GCC implementing states, first supply of new residential buildings, international transport, certain healthcare and education. Exempt: financial services on a margin basis, residential lease, bare land, local passenger transport.

Registration thresholds:

• mandatory: taxable supplies and imports > AED 375,000 in any rolling 12-month window;
• voluntary: taxable supplies / expenses / imports > AED 187,500.

Reverse charge (Art. 48): import of services / goods from outside the UAE — the recipient accounts for output VAT and reclaims input VAT (net effect = 0 for fully taxable persons).

Simplified model: partial exemption is computed pro-rata to the share of taxable supplies in total. Real returns require direct attribution plus standard / special apportionment.