According to the law, foreign banks are subject to a 20 per cent tax on their annual taxable income.

However, if these banks pay corporate tax in accordance with Federal Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, the amount of corporate tax will be deducted from their total tax liability.

The UAE has 193 agreements in place with other nations to avoid double taxation on investments overseas. The agreements on the Avoidance of Double Taxation are aimed to:

• Promote the UAE’s development goals and diversify sources of national income
• Eliminate double taxation, additional or indirect taxes, and prevent fiscal evasion
• Facilitate cross-border trade and investment flows
• Provide comprehensive protection for taxpayers from direct and indirect double taxation
• Avoid barriers to the free movement of trade and capital
• Adapt to global changes in taxation, finance, and the use of modern financial instruments, including transfer pricing
• Encourage the exchange of goods, services, and capital across borders.

The UAE does not levy income tax on individuals.

Restaurants, hotels, hotel apartments, resorts etc. in the UAE might charge one or more of the following taxes:

• 10 per cent tax on the room rate
• 10 per cent service charge
• 10 per cent municipality fees
• City tax (ranging from 6 to 10 per cent)
• 6 per cent tourism fee

In Dubai, hotels charge 'Tourism Dirham Fee' per room per night of occupancy (for a maximum of 30 consecutive nights) ranging from AED 7 to 20 depending on the category/grade of the hotel.

In May 2016, it was announced that hotels in Abu Dhabi would charge a new additional fee of 4 percent of hotel stay bill and AED 15 charges per night per room.

In Ras Al Khaimah, hotels charge AED 15 tourism fee per room per night.