Duties and Taxes in Dubai, UAE

Dubai is a very rich Emirate and locals and residents are afforded every luxury which includes no taxes on personal salary income.  Although, it is very wealthy and has the resources to give its citizens the tax breaks it still does have a local municipality tax that is collected by added charges to your monthly DEWA bill (Dubai Electricity and Water Association ).  The amount added to your bill is not a significant amount either and for most of the residential apartments and villas it ranges up to 400 AED.

The government also adds roughly 30% of municipality taxes to all alcohol stores; restaurants add service charges of 15% at many restaurants, which are usually factored into the bill as an added charge.  Everything else is tax free, for example unlike retail stores in North America the price listed on the tag is the same price you pay.  In fact, you can even bargain with store owners in the souk and other little markets.   I’m sure you would agree; since there are no income or corporate taxes in Dubai you get to save lot of money especially if you are coming from countries where income tax is almost half of your salary.

Instructions

  • 1

    No taxes are added to your personal salary and you may keep the entire income for yourself       other than paying your bills on time.


  • 2

    DEWA Charge

    Your monthly Dubai Electricity and Water Association will have added tax service fee and is one of the ways the local municipality collects income from residents for providing city services. The added service charges are approximately 400 AED   which is included in your monthly bill and must be paid on a monthly basis. Remember, do not to let your balance go unpaid for longer than its due date otherwise you will face penalties, and possibly lose your services and have to place a bigger deposit next time around to prevent repeated late payments.

  • 3

    All liquor stores have service charges of 15% on most of the alcoholic products. The Ministry of Interior uses this as another form of municipal taxing at the city level to cover the services which the city supplies to its residents.

  • 4

    A local service charge is added to many restaurants; it is automatically added onto your bill. This is yet another way the city taxes residents for providing food establishments and services. Even then, not all restaurants face the service charges; higher end and popular restaurants have to include the charge on their bills. However, the customary is if you go to one of the restaurants with the added service charges for dining, then you do not have to leave behind a tip.

  • 5

    Enjoy Dubai as much as you can, it is a great city with very low tax and full of every luxury, entertainment, and attraction. Dubai caters to millions of tourists from all over the world. Shopping is fun in the duty free shops without paying any added tax. In the souks and markets you can negotiate a price you feel is fair and pay that amount only.

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